Question

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.
	1	Paid three months’ rent on a lease rental contract, $6,000.
	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, $8,000.
	5	Purchased additional office equipment on account from Office Necessities Co., $5,100.
	6	Received cash from clients on account, $12,750.
	10	Paid cash for a newspaper advertisement, $500.
	12	Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
	12	Provided services on account for the period July 1–12, $14,200.
	14	Paid receptionist for two weeks’ salary, $1,500.

Record the following transactions on Page 2 of the journal:

Jul.	17	Received cash from cash clients for fees earned during the period July 1–17, $10,400.
	18	Paid cash for supplies, $1,000.
	20	Provided services on account for the period July 13–20, $9,000.
	24	Received cash from cash clients for fees earned for the period July 17–24, $8,500.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,500.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Received cash from cash clients for fees earned for the period July 25–31, $7,100.
	31	Provided services on account for the remainder of July, $5,500.
	31	Jolene withdrew $20,000 for personal use.

	Required:
1.	Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
2.	Post the July transactions. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. Add the appropriate posting reference to the journal in CengageNOW.
3.	Prepare an unadjusted trial balance.
4.	At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). • Insurance expired during July is $375. • Supplies on hand on July 31 are $2,850. • Depreciation of office equipment for July is $400. • Accrued receptionist salary on July 31 is $140. • Rent expired during July is $2,000. • Unearned fees on July 31 are $3,000.
5.	(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.
6.	A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. B. Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.
7.	Prepare an adjusted trial balance.

Chart of Accounts

CHART OF ACCOUNTS
Gourmet Consulting
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Jolene Upton, Capital 32 Jolene Upton, Drawing	REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense

Journal

1.	Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
2. B.	Add the appropriate posting reference to the journal in CengageNOW.
6. A.	Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.
6. B.	Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.

Note: Scroll down to access page 2 through 3 of the journal.

Answer 1

1. Gourmat Consulting

General Journal :

Page 1 :

Date	Account Titles	Debit	Credit
July 2019		$	$
1	Cash	19,000
	Accounts Receivable	22,300
	Supplies	3,800
	Office Equipment	8,900
	Jolene Upton, Capital		54,000
1	Prepaid Rent	6,000
	Cash		6,000
2	Prepaid Insurance	4,500
	Cash		4,500
4	Cash	8,000
	Unearned Fees		8,000
5	Office Equipment	5,100
	Accounts Payable		5,100
6	Cash	12,750
	Accounts Receivable		12,750
10	Miscellaneous Expense	500
	Cash		500
12	Acounts Payable	3,000
	Cash		3,000
12	Accounts Receivable	14,200
	Fees Earned		14,200
14	Salary Expense	1,500
	Cash		1,500

Page 2 :

17	Cash	10,400
	Fees Earned		10,400
18	Supplies	1,000
	Cash		1,000
20	Accounts Receivable	9,000
	Fees Earned		9,000
24	Cash	8,500
	Fees Earned		8,500
26	Cash	12,000
	Accounts Receivable		12,000
27	Salary Expense	1,500
	Cash		1,500
29	Miscellaneous Expense	325
	Cash		325
31	Miscellaneous Expense	675
	Cash		675
31	Cash	7,100
	Fees Earned		7,100
31	Accounts Receivable	5,500
	Fees Earned		5,500
31	Jolene Upton, Drawing	20,000
	Cash		20,000

2. T Accounts :

Cash :

Balance, July 1	0	Prepaid Rent	6,000
Jolene Upton, Capital	19,000	Prepaid Insurance	4,500
Unearned Fees	8,000	Miscellaneous Expense	500
Accounts Receivable	12,750	Accounts Payable	3,000
Fees Earned	10,400	Salary Expense	1,500
Fees Earned	8,500	Supplies	1,000
Accounts Receivable	12,000	Salary Expense	1,500
Fees Earned	7,100	Miscellaneous Expense	325
		Miscellaneous Expense	675
		Jolene Upton, Drawing	20,000
		Balance, July 31	38,750
	77,750		77,750

3. Gourmet Consulting

Unadjusted Trial Balance

July 31, 2019

Account Titles	Debit	Credit
	$	$
Cash	38,750
Accounts Receivable	26,250
Supplies	4,800
Prepaid Rent	6,000
Prepaid Insurance	4,500
Office Equipment	14,000
Accumulated Depreciation		0
Accounts Payable		2,100
Salaries Payable		0
Unearned Fees		8,000
Jolene Upton, Capital		54,000
Jolene Upton, Drawing	20,000
Fees Earned		54,700
Salay Expense	3,000
Rent Expense	0
Supplies Expense	0
Depreciation Expense	0
Insurance Expense	0
Miscellaneous Expense	1,500
Totals	118,800	118,800

4. General Journal

Page 3 :

Adjusting Entries :

Adjustment #	Account Titles	Debit	Credit
July 31, 2019		$	$
1.	Insurance Expense	375
	Prepaid Insurance		375
2.	Supplies Expense	1,950
	Supplies		1,950
3.	Depreciation Expense	400
	Accumulated Depreciation		400
4.	Salary Expense	140
	Salaries Payable		140
5.	Rent Expense	2,000
	Prepaid Rent		2,000
6.	Unearned Fees	5,000
	Fees Earned		5,000

7. Adjusted Trial Balance :

Account Titles	Debit	Credit
	$	$
Cash	38,750
Accounts Receivable	26,250
Supplies	2,850
Prepaid Rent	4,000
Prepaid Insurance	4,125
Office Equipment	14,000
Accumulated Depreciation		400
Accounts Payable		2,100
Salaries Payable		140
Unearned Fees		3,000
Jolene Upton, Capital		54,000
Jolene Upton, Drawing	20,000
Fees Earned		59,700
Salary Expense	3,140
Rent Expense	2,000
Supplies Expense	1,950
Depreciation Expense	400
Insurance Expense	375
Miscellaneous Expense	1,500
Totals	119,340	119,340