Reference no: EM13824687

Problem-

During the month of July, the following occurred:

July 2 received $8,127 of the prior month's receivables

July 3 paid $5,220 of the prior month's accounts payable and paid $3,200 for July rent

July 5 earned $6,736 worth of the prior month's unearned revenue

July 6 provided a service and billed the client $3,376

July 9 bought advertising supplies for $2,217 on account

July 10 received $4,200 for a service to be provided

July 11 provided a service and billed the client $7,366

July 12 collected $9,127 of receivables

July 13 paid $7,500 of the notes payable

July 16 bought advertising supplies for $1,189 cash

July 18 provided a service and billed the client $4,934

July 20 received $2,700 for a service to be provided

July 23 paid $4,223 travel expense (all for July travel)

July 24 paid $2,400 of accounts payable

July 25 paid temporary employees $3,356 of wages (all for July work)

July 26 paid $5,000 of the notes payable

July 27 paid the shareholder a $3,000 dividend

July 30 provided a service fully earning the $4,200 from July 10

July 31 paid the shareholder a $4,500 dividend

Required - Part A

Part A1: provide general journal entries in general journal form for the above transactions

Part A2: create a trial balance at July 31 fully taking into account the beginning balances and the general journal entries recorded in part A1 (t-accounts are recommended for key accounts; do not hand them in t-accounts)

Adjusting Entry Information

-the insurance expires at a rate of $1,218 per month
-a month-end count reveals about $2,400 of advertising supplies remain on-hand
-annual depreciation (straight-line is used) is $19,356
-a thorough analysis reveals only $3,200 of the unearned revenue is not yet earned at month-end
-the interest on the N/P for the month is $418 (hint: don't increase the principal of the note)
-estimated expenses for the month are $2,100 utilities and $800 telephone
-a bank reconciliation reveals that a $4,000 payment from a client (A/R) was not recorded

Required - Part B

Part B1: provide adjusting journal entries, in general journal form, for the above

Part B2: create an adjusted trial balance

Part B3: create an income statement and a statement of retained earnings for the month of July

Part B4: create a balance sheet at 7/31/12

Part B5: provide closing entries in general journal form

Additional information-

This problem belongs to Basic Accounting and it discusses about preparing journal entries and providing adjusting entries and creating an adjusted trial balance.