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For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July:

Jul.1The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,000; accounts receivable, $20,800; supplies, $3,000; and office equipment, $7,000. There were no liabilities received.1Paid two months rent on a lease rental contract, $4,800.2Paid the premiums on property and casualty insurance policies, $4,500.4Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000.5Purchased additional office equipment on account from Office Station Co., $6,500.6Received cash from clients on account, $15,100.10Paid cash for a newspaper advertisement, $400.12Paid Office Station Co. for part of the debt incurred on July 5, $5,200.12Recorded services provided on account for the period July 112, $13,300.14Paid receptionist for two weeks salary, $1,800.

Record the following transactions on Page 2 of the journal:

LabelsCurrent assetsCurrent liabilitiesExpensesFor the Month Ended July 31, 20Y2July 31, 20Y2Property, plant, and equipmentRevenuesAmount DescriptionsBalances, July 1, 20Y2Balances, July 31, 20Y2DividendsIssued common stockNet incomeNet lossTotal assetsTotal current assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders equityTotal property, plant, and equipmentTotal stockholders equity Chart of Accounts 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 REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends

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