Question

please answer the problem as if you are putting them in the boxes simply.

Click to come the Daten-ellek to s t recent fiscal year, Flounder Computer Consultants post-closing trial balance was as follows: Debit Credit Accounts receivable Supplies $4,390 1,010 500 Accounts payable Unearned service revenue $340 940 3.000 Common stock Retained earnings 1.700 $5.900 $5,000 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Flounder conducted the following transactions during July 2017, and adjusts its accounts monthly July 1 Purchased equipment, paying $3,600 cash and signing a 2-year note payable for $16,800. The equipment has a 4-year useful life. The note has a 6% Interest rate which is payable on the first day of each following month. 2 Issued 16,800 shares of common stock for $42,000 cash 3 Paid $3,000 cash for a 12-month Insurance policy effective July 1 3 Paid the first 2 July and August 2017) months' rent for an annual lease of office space for $3,400 per month 6 Paid $3.200 for supplies. 9 Visited client offices and agreed on the terms of a consulting project. Flounder will bill the client, Connor Productions, on the 20th of each month for services performed 10 Collected $1,010 cash on account from Milani Brothers. This client was billed in June when Flounder performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $940 in advance last month. All services relating to this payment are now completed. 14 Paid $340 cash for a utility bil. This related to June utilities that were accrued at the end of June. 16 Met with a new cient, Thunder Bay Technologies. Received $10,100 cash in advance for future services to be performed 18 Pald semi-monthly salaries for $9,200. 20 Performed services worth $23.500 on account and billed customers.

(prepare a trail balance sheet at july 31. trail balances.

prepr income statement for july

Answer 1

Credit Calculation Flounder Computer Consultants Journal entries No. Date Account Titles & Explanation 1-Jul Equipment Cash Notes Payable Debit 20,400 3,600 16,800 42,000 2-Jul Cash Common Stock 42,000 3-Jul Prepaid Insurance 3,000 Cash 3,000 6,800 =3,400*2 3-Jul Prepaid Rent Cash 6,800 3,200 6-Jul Supplies Cash 3,200 9-Jul No entry 1,010 10-Jul Cash Accounts Receivable 1,010 940 13-Jul Unearned Service Revenue Service Revenue 940 340 14-Jul Accounts Payable Cash 340 10,100 16-Jul Cash Unearned Service Revenue 10,100 9,200 18-Jul Salaries & wages expense Cash 9,200 23,500 20-Jul Accounts Receivable Service Revenue 23,500 1,800 20-Jul Advertising expense Accounts Payable 1,800 8,400 23-Jul Unearned Service Revenue Service Revenue 8,400 12,600 27-Jul Cash Accounts Receivable 12,600 Adjusting entries 1 31-Jul Insurance expense Prepaid Insurance 250 =3,000/12 250 2 3,400 31-Jul Rent expense Prepaid Rent 3,400 3 1,050 31-Jul Supplies expense Supplies 1,050 4 425 31-Jul Depreciation expense Accumulated Depreciation-Equipment 425 5 84 =16,800*6%*1/12 31-Jul Interest expense Interest Payable 84 6 9,200 31-Jul Salaries & Wages expense Salaries & Wages Payable 9,200 7 670 31-Jul Utilities expense Accounts Payable 670 1,010 1,010 8 31-Jul Income tax expense Income tax Payable Clsoing entries 1 31-Jul Service Revenue Income Summary 32,840 32,840 2 27,089 31-Jul Income Summary Salaries & wages expense Rent expense Advertising expense Supplies expense Utilities expense Depreciation expense Insurance expense Interest expense Income tax expense 18,400 3,400 1,800 1,050 670 425 250 84 1,010 3 5,751 31-Jul Income Summary Retained Earnings '= 32840 - 27089 5,751

Flounder Computer Consultants T Accounts Date Debit Date Credit Cash Date Debit Date Credit Accounts Receivable Op bal $ 1,010 10-Jul $ 1,010 20-Jul $ 23,500 27-Jul $ 12,600 Date Debit Date Credit Supplies Op bal $ 580 6-Jul $ 3,200 31-Jul $ 1,050 Date Debit Date Credit Prepaid Insurance 3-Jul $ 3,000 31-Jul $ 250 Op bal $4,390 2-Jul $ 42,000 10-Jul $ 1,010 16-Jul $ 10,100 27-Jul $ 12,600 1-Jul $ 3,600 3-Jul $ 3,000 3-Jul $ 6,800 6-Jul $ 3,200 14-Jul $ 340 18-Jul $ 9,200 Bal. Bal. $ 43,960 Prepaid Rent 3-Jul $ 6,800 31-Jul $ 3,400 $ 10,900 Equipment 1-Jul $ 20,400 Bal. $ 2,730 Accumulated Depreciation-Equipment 31-Jul $ 425 Bal. $ 2,750 Accounts Payable 14-Jul $ 340 Op bal $ 340 20-Jul $ 1,800 31-Jul $ 670 Bal. Bal. $ 3,400 Interest Payable 31-Jul $ $ 20,400 Salaries & wages Payable 31-Jul $ 9,200 al. $ 425 Income taxes Payable 31-Jul $ 1,010 $ 2,470 Unearned Service Revenue 13-Jul $ 940 Op bal $ 940 23-Jul $ 8,400 16-Jul $ 10,100 84 Bal. $ 84 Notes Payable 1-Jul $ 16,800 Bal. $ 9,200 Common Stock Op bal $ 3,000 2-Jul $ 42,000 Bal. $ 1,010 Retained Earnings Op bal $ 1,700 31-Jul $ 5,751 Bal. $ 1,700 Income Summary 31-Jul $ 27,089 31-Jul $32,840 31-Jul $ 5,751 $ 7,451 $ - Bal. $ 16,800 Service revenue 13-Jul $ 940 20-Jul $ 23,500 31-Jul $ 32,840 23-Jul $ 8,400 Bal. $ 45,000 Salaries & wages expense 18-Jul $ 9,200 31-Jul $ 9,200 31-Jul $ 18,400 Bal. Rent expense 31-Jul $ 3,400 Bal. Advertsing expense 20-Jul $ 1,800 31-Jul $ 3,400 31-Jul $ 1,800 Bal. $ - Supplies expense 31-Jul $ 1,050 31-Jul $ 1,050 Bal. $ . Utilties expense 31-Jul $ 670 31-Jul $ Bal. $ Depreciation expense 3 1-Jul $ 425 31-Jul $ Bal. $ . Insurance expense 31-Jul $ 250 31-Jul $ 670 425 250 Bal. Bal. $ - Bal. $ Interest expense 31-Jul $ 84 31-Jul $ Bal. $ - Income tax expense 31-Jul $ 1,010 | 31-Jul $ 1,010 84 Bal. $- Bal. $

Flounder Computer Consultants Account Names Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Salaries & wages Payable Income tax Payable Unearned Service Revenue Notes Payable Common Stock Retained Earnings Service Revenue Salaries & wages expense Rent expense Advertising expense Supplies expense Utilities expense Depreciation expense Insurance expense Interest expense Income tax expense Totals Adjusted TB Debit Credit 43,960 10,900 2,730 2,750 3,400 20,400 425 2,470 84 9,200 1,010 1,700 16,800 45,000 1,700 32,840 18,400 3,400 1,800 1,050 670 425 250 84 1,010 111,229 111,229 Post Closing TB Debit Credit 43,960 10,900 2,730 2,750 3,400 20,400 425 2,470 84 9,200 1,010 1,700 16,800 45,000 7,451 84,140 84,140

32,840 Flounder Computer Consultants Income Statement For the month ended July 31, 2017 Revenues Service Revenue Expenses Salaries & wages expense Rent expense Advertising expense Supplies expense Utilities expense Depreciation expense Insurance expense Interest expense Income tax expense Total Expenses Net Income 18,400 3,400 1,800 1,050 670 425 250 84 1,010 27,089 5,751 Statement of Retained Earnings For the month ended July 31, 2017 Beginning balance Add: Net Income Ending Balance 1,700 5,751 7,451

Flounder Computer Consultants Balance Sheet As of July 31, 2017 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Total Current Assets Liabilities & Stockholders Equity Current Liabilities 43,960 Accounts Payable 10,900 Interest Payable 2,730 Salaries & wages Payable 2,750 Income tax Payable 3,400 Unearned Service Revenue 63,740 Total Current Liabilities 2,470 84 9,200 1,010 1,700 14,464 16,800 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets 31,264 Non-Current Liabilities 20,400 Notes Payable (425) 19,975 Total Liabilities Stockholders Equity Common Stock Retained earnings Total Stockholders Equity 45,000 7,451 52,451 Total Assets 83,715 Total Liabilities & Stockholders Equity 83,715