1. On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July following. 
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3. DATE TRANSACTIONS 
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5. July 1 Signed a lease for an office and issued Check 101 for $13,950 to pay the rent in advance for six months. 
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7. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $31,200; received $30,576 because the bank deducted the interest in advance. 
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9. 1 Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $6,500 per month; received the entire fee of $78,000 in advance. 
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11. 1 Purchased office equipment for $17,200 from Office Outfitters; issued a two-month, 9 percent note in payment. The equipment is estimated to have a useful life of four years and a $1,840 salvage value. The equipment will be depreciated using the straight-line method. 
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13. 1 Purchased a one-year insurance policy and issued Check 102 for $1,680 to pay the entire premium. 
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15. 3 Purchased office furniture for $22,120 from Furniture Warehouse; issued Check 103 for $15,520 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of six years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. 
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17. 5 Purchased office supplies for $1,910 with Check 104. Assume $850 of supplies are on hand on July 31, 2019. 
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19. Required: 
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21. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. Record the adjusting journal entries that must be made on July 31, 2019. 
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23. Analyze: What balance should be reflected in Unearned Accounting Fees on July 31, 2019?

Answer rating: 100% (QA)

Date General Journal Debit Credit Jul 1 Prepaid rent 13950 Cash 13950 To record rent paid in advance ... View the full answer