Question

PR 4-5A Complete accounting cycle For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the busi- ness, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: July 1. The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500 Obj. 4,5 accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received. 1. Paid two months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $4,500. 4. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500. 5. Purchased additional office equipment on account from Office Station Co., $6,500. 6. Received cash from clients on account, $15,300 10. Paid cash for a newspaper advertisement, $400. 12. Paid Office Station Co. for part of the debt incurred on July 5, $5,200 12. Recorded services provided on account for the period July 1-12, $13,300. 14. Paid receptionist for two weeks'salary, $1,750

Answer 1

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PAGE 1
JOURNAL
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
Jul 1, 2016	Cash	11	$13,500
	Accounts Receivable	12	$20,800
	Supplies	14	$3,200
	Office Equipment	18	$7,500
	Steffy Lopez, Capital	31		$45,000
Jul 1, 2016	Prepaid Rent	15	$4,800
	Cash	11		$4,800
Jul 2, 2016	Prepaid Insurance	14	$4,500
	Cash	11		$4,500
Jul 4, 2016	Cash	11	$5,500
	Unearned Fees	23		$5,500
Jul 5, 2016	Office Equipment	18	$6,500
	Accounts Payable	21		$6,500
Jul 6, 2016	Cash	11	$15,300
	Accounts Receivable	12		$15,300
Jul 10, 2016	Miscellaneous Expense	59	$400
	Cash	11		$400
Jul 12, 2016	Accounts Payable	21	$5,200
	Cash	11		$5,200
Jul 12, 2016	Accounts Receivable	12	$13,300
	Fees Earned	41		$13,300
Jul 14, 2016	Salary Expense	51	$1,750
	Cash	11		$1,750
	Page 2
Jul 17, 2016	Cash	11	$9,450
	Fees Earned	41		$9,450
Jul 18, 2016	Supplies	14	$600
	Cash	11		$600
Jul 20, 2016	Accounts Receivable	12	$6,650
	Fees Earned	41		$6,650
Jul 24, 2016	Cash	11	$4,000
	Fees Earned	41		$4,000
Jul 26, 2016	Cash	11	$12,000
	Accounts Receivable	12		$12,000
Jul 27, 2016	Salary Expense	51	$1,750
	Cash	11		$1,750
Jul 29, 2016	Miscellaneous Expense	59	$325
	Cash	11		$325
Jul 31, 2016	Miscellaneous Expense	59	$675
	Cash	11		$675
Jul 31, 2016	Cash	11	$5,200
	Fees Earned	41		$5,200
Jul 31, 2016	Accounts Receivable	12	$3,000
	Fees Earned	41		$3,000
Jul 31, 2016	Dividend	32	$12,500
	Cash	11		$12,500