220Chapter 4 The Accounting Cycle4. At the end of July, the following adjustment data were assembled. Analyze and use these datato complete parts (5) and (6).(a) Insurance expired during July is $375.(b) Supplies on hand on July 31 are $1,525.(c) Depreciation of office equipment for July is $750.(d) Accrued receptionist salary on July 31 is $175.(e) Rent expired during July is $2,400.(f) Unearned fees on July 31 are $2,750.5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and completethe spreadsheet.6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.7. Prepare an adjusted trial balance.8. Prepare an income statement, a statement of stockholders' equity, and a balance sheet.9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal.Indicate closed accounts by inserting a line in both the Balance columns opposite the closingentry.10. Prepare a post-closing trial balance. ✓8. Net income:$33,475olEXCEL TEMPLATEPR 4-5A Complete accounting cycleObj. 4, 5For the past several years, Steffy Lopez has operated a part-time consulting business from hishome. 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 thefollowing transactions during July:July 1. The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500; accountsreceivable, $20,800; supplies, $3,200, and office equipment, $7,500. There were no liabilities received.1. Paid two months' rent on a lease rental contract, $4,800.Chapter 4 The Accounting Cycle2. 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 unearnedfees, $5,500.5. Purchased additional office equipment on account from Office Station Co, $6,500.6. Received cash from clients on account, $15,300.10. Paid cash for a newspaper advertisement, $400.12. Paid Office Station Co. for part of the debt incurred on July 5, $5,200.12. Recorded services provided on account for the period July 1-12, $13,300.14. Paid receptionist for two weeks' salary, $1,750Record the following transactions on Page 2 of the journal:17. Recorded cash from cash clients for fees earned during the period July 1-17, 59,450.18. Paid cash for supplies, $600.20. Recorded services provided on account for the period July 13-20, 56,650.24. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000.26. Received cash from clients on account, $12,00027. Paid receptionist for two weeks' salary, $1,75029. Paid telephone bill for July, $325.31. Paid electricity bill for July, 5675.31. Recorded cash from cash clients for fees earned for the period July 25-31, $5,200.31 Recorded services provided on account for the remainder of July, $3,000.31. Paid dividends, $12,50011 Cash12 Accounts ReceivableInstructions1. Journalize each transaction in a two-column journal starting on Page 1, referring to thefollowing chart of accounts in selecting the accounts to be debited and credited. (Do notinsert the account numbers in the journal at this time.)14 Supplies15 Prepaid Rent16 Prepaid Insurance18 Office Equipment19 Accumulated Depreciation21 Accounts Payable22 Salaries Payable23 Unearned Fees31 Common Stock32 Retained Earnings33 Dividends41 Fees Earned51 Salary Expense52 Rent Expense21953 Supplies Expense54 Depreciation Expense55 Insurance Expense59 Miscellaneous Expense2. Post the journal to a ledger of four-column accounts.3. Prepare an unadjusted trial balance.(Continued)

Name: 220Chapter 4 The Accounting Cycle4. At the end of July, the following
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Description: 220Chapter 4 The Accounting Cycle4. At the end of July, the following adjustment data were assembled. Analyze and use these datato complete parts (5) and (6).(a) Insurance expired during July is $375.(b) Supplies on hand on July 31 are $1,525.(c) De

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✔8. Net income: $33,475 EXCEL TEMPLATE PR 4-5A Complete accounting cycle Obj. 4,5 For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2012, 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: July 1. The following assets were received from Steffy Lopez in exchange for common stock: cash, $13.500; accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received. Paid two months' rent on a lease rental contract, $4,800. 1. 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, 55,500 5. Purchased additional office equipment on account from Office Station Co. 56,500. 6 Received cash from clients on account, $15,300 Chapter 4 The Accounting Cycle 10. Paid cash for a newspaper advertisement, $400. 12. Paid Office Station Co. for part of the debt incurred on July 5, $5,200 12. Recorded services provided on account for the period July 1-12. $13,300. 14. Paid receptionist for two weeks' salary, $1,750. Record the following transactions on Page 2 of the journal 17. Recorded cash from cash clients for fees earned during the period July 1-17, 59,450. 18. Paid cash for supplies, $600. 20. Recorded services provided on account for the period July 13-20, 56,650. 24. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,750. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, 5675. 31. Recorded cash from cash clients for fees earned for the period July 25-31, $5,200. 31. Recorded services provided on account for the remainder of July, $3.000. 31. Paid dividends, $12.500 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent Instructions 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 219 31 Common Stock 32 Retained Earnings 33 Dividends 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance.