50.1K

Verified Solution

Link Copied!

ACR 4.4 At June 30, 2020, the end of its most recent fiscal year, Green River Computer Consultants' post closing trial balance was as follows. Debit Credit Cash 5.230 Accounts receivable 1.200 Supplies 690 Accounts Payable 400 Unearned service revenue 1,120 Share Capital Ordinary 4,000 Retained earnings 1,600 7,120 7,120 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Green River conducted the following transactions during July 2020, and adjusts its accounts monthly July 1 Purchased equipment, paying $ 4.000 cash and signing 2-year note payable for $ 20,000 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. Shareholders invested $ 50,000 cash in the company in exchange for ordinary shares Paid $ 3,600 cash for 12-month insurance police effective July 1. Paid the first 2(July and August 2020) months' rent for an annual lease of office space for $4,000 per month Paid $ 3,800 supplies Visited client offices and agreed on the terms of a consulting project. Green River will bill the client, Connor Productions, on the 20th of each month for services performed Collected $ 1.200 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. Performed services for Fitzgerald Enterprises. This client paid $ 1,120 in advance last month. All services relating to this payment are now completed. Paid $ 400 cash for a utility bill. This related to June utilities that were accrued at the end of June. Met with a new client, Thunder Bay Technologies. Received $ 12,000 cash in advance for future services to be performed Paid semi-monthly salaries for $ 11,000 Performed services worth $ 28,000 on account and billed customers. Received a bill for $ 2,200 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $ 10,000 of revenue from the cash advance received July 16 27 Received $ 15,000 cash from customers billed on July 20 Adjustment data: 1 Adjustment of prepaid insurance 2 Adjustment of prepaid rent 3 Supplies used, $ 1.250 4 Equipment depreciation, $ 500 per month 5 Accrued of interest on note payable. 6 Salaries for the second half of July, 11,000 to be paid on August 1 7 Estimated utilities expense for July, $ 800 8 Income tax for July, $ 1,200, will be paid on August 20 The chart of Accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income tax payable, Salaries and Wages Payable, Unearned service revenue, Share Capital-Ordinary Retained Earnings, Income Summary, Service Revenue, Supplies expense, Depreciation expense, Insurance Expense, Salaries and Wages expense, advertising expense, income tax expense, interest expense, rent expense, and Utilities expense Instructions a Enter the August 1 balances in the ledger accounts (Use T-accounts). b Journalize the August transactions. c Post to the leger accounts. (use T-accounts) d Prepare a trial balance at July 31. e Journalize and post adjusting entries. f Prepare an adjusted trial balance. Prepare the income statement and a retained earnings statement for July and a classified statement of financial position at July 31 h Journalize and post closing entries and complete the closing process. i Prepare a post-closing trial balance at July 31 ACR 4.4 At June 30, 2020, the end of its most recent fiscal year, Green River Computer Consultants' post closing trial balance was as follows. Debit Credit Cash 5.230 Accounts receivable 1.200 Supplies 690 Accounts Payable 400 Unearned service revenue 1,120 Share Capital Ordinary 4,000 Retained earnings 1,600 7,120 7,120 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Green River conducted the following transactions during July 2020, and adjusts its accounts monthly July 1 Purchased equipment, paying $ 4.000 cash and signing 2-year note payable for $ 20,000 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. Shareholders invested $ 50,000 cash in the company in exchange for ordinary shares Paid $ 3,600 cash for 12-month insurance police effective July 1. Paid the first 2(July and August 2020) months' rent for an annual lease of office space for $4,000 per month Paid $ 3,800 supplies Visited client offices and agreed on the terms of a consulting project. Green River will bill the client, Connor Productions, on the 20th of each month for services performed Collected $ 1.200 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. Performed services for Fitzgerald Enterprises. This client paid $ 1,120 in advance last month. All services relating to this payment are now completed. Paid $ 400 cash for a utility bill. This related to June utilities that were accrued at the end of June. Met with a new client, Thunder Bay Technologies. Received $ 12,000 cash in advance for future services to be performed Paid semi-monthly salaries for $ 11,000 Performed services worth $ 28,000 on account and billed customers. Received a bill for $ 2,200 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $ 10,000 of revenue from the cash advance received July 16 27 Received $ 15,000 cash from customers billed on July 20 Adjustment data: 1 Adjustment of prepaid insurance 2 Adjustment of prepaid rent 3 Supplies used, $ 1.250 4 Equipment depreciation, $ 500 per month 5 Accrued of interest on note payable. 6 Salaries for the second half of July, 11,000 to be paid on August 1 7 Estimated utilities expense for July, $ 800 8 Income tax for July, $ 1,200, will be paid on August 20 The chart of Accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income tax payable, Salaries and Wages Payable, Unearned service revenue, Share Capital-Ordinary Retained Earnings, Income Summary, Service Revenue, Supplies expense, Depreciation expense, Insurance Expense, Salaries and Wages expense, advertising expense, income tax expense, interest expense, rent expense, and Utilities expense Instructions a Enter the August 1 balances in the ledger accounts (Use T-accounts). b Journalize the August transactions. c Post to the leger accounts. (use T-accounts) d Prepare a trial balance at July 31. e Journalize and post adjusting entries. f Prepare an adjusted trial balance. Prepare the income statement and a retained earnings statement for July and a classified statement of financial position at July 31 h Journalize and post closing entries and complete the closing process. i Prepare a post-closing trial balance at July 31

Answer & Explanation Solved by verified expert

See Answer