Part 1 Answer

Date	General Journal	Debit	Credit
		$	$
July 1	Cash	25,700
	Accounts Receivable	30,200
	Supplies	5,100
	Office Equipment	12,100
	Samantha Hogan, Capital		73,100
July 1	Prepaid Rent	8,100
	Cash		8,100
July 2	Prepaid Insurance	6,100
	Cash		6,100
July 3	Cash	10,800
	Unearned Fees		10,800
July 5	Office Equipment	6,900
	Accounts Payable		6,900
July 6	Cash	17,300
	Accounts Receivable		17,300
July 10	Miscellaneous Expense	680
	Cash		680
July 12	Accounts Payable	4,100
	Cash		4,100
July 12	Accounts Receivable	19,200
	Fees Earned		19,200
July 14	Salary Expense	2,000
	Cash		2,000
July 17	Cash	14,100
	Fees Earned		14,100
July 18	Supplies	1,400
	Cash		1,400
July 20	Accounts Receivable	12,200
	Fees Earned		12,200
July 24	Cash	11,500
	Fees Earned		11,500
July 26	Cash	16,300
	Accounts Receivable		16,300
July 27	Salary Expense	2,000
	Cash		2,000
July 29	Miscellaneous Expense	440
	Cash		440
July 31	Miscellaneous Expense	910
	Cash		910
July 31	Cash	9,600
	Fees Earned		9,600
July 31	Accounts Receivable	7,400
	Fees Earned		7,400
July 31	Samatha Hogan, Drawing	27,100
	Cash		27,100

3.

	Arborvite Consulting
	Unadjusted Trial Balance
	July 31, 20Y9
Accounts	Debit	Credit
Cash	$ 52,470
Accounts Receivable	35,400
Supplies	6,500
Prepaid Insurance	6,100
Prepaid Rent	8,100
Office Equipment	19,000
Accumulated Depreciation: Office Equipment		$ 0
Accounts Payable		2,800
Salaries Payable		0
Unearned Fees		10,800
Samantha Hogan, Capital		73,100
Samantha Hogan, Drawing	27,100
Fees Earned		74,000
Salary Expense	4,000
Supplies Expense
Rent Expense
Insurance Expense
Depreciation Expense
Miscellaneous Expense	2,030
Totals	$ 160,700	$160,700

4.

Date	General Journal	Debit	Credit
		$	$
July 31	Insurance Expense	510
	Prepaid Insurance		510
July 31	Supplies Expense	2,600
	Supplies		2,600
July 31	Depreciation Expense	540
	Accumulated Depreciation : Office Equipment		540
July 31	Salary Expense	190
	Salaries Payable		190
July 31	Rent Expense	2,700
	Prepaid Rent		2,700
July 31	Unearned Fees	6,700
	Fees Earned		6,700

5.

	Arborvite Consulting
	Adjusted Trial Balance
	July 31, 20Y9
Accounts	Debit	Credit
Cash	$ 52,470
Accounts Receivable	35,400
Supplies	3,900
Prepaid Insurance	5,590
Prepaid Rent	5,400
Office Equipment	19,000
Accumulated Depreciation: Office Equipment		$ 540
Accounts Payable		2,800
Salaries Payable		190
Unearned Fees		4,100
Samantha Hogan, Capital		73,100
Samantha Hogan, Drawing	27,100
Fees Earned		80,700
Salary Expense	4,190
Supplies Expense	2,600
Rent Expense	2,700
Insurance Expense	510
Depreciation Expense	540
Miscellaneous Expense	2,030
Totals	$ 161,430	$161,430

Part 2:

For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

Required:

8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owners equity, and a balance sheet for the month ended July 31, 20Y9. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owners equity, and a balance sheet for the month ended July 31, 20Y9.*

*Be sure to read the instructions for each financial statement carefully.

9.

A.	Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31.
B.	Use the spreadsheet to post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW.

10. Prepare a post-closing trial balance.

CHART OF ACCOUNTSArborvite ConsultingGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
14	Supplies
15	Prepaid Rent
16	Prepaid Insurance
18	Office Equipment
19	Accumulated Depreciation-Office Equipment

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Unearned Fees

	EQUITY
31	Samantha Hogan, Capital
32	Samantha Hogan, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense
55	Insurance Expense
59	Miscellaneous Expense

Labels:

Current assets

Current liabilities

Expenses For the Month Ended July 31, 20Y9

July 31, 20Y9

Property,

plant, and equipment

Revenues

Amount Descriptions

Decrease in owners equity

Increase in owners equity

Investments during the month

Net income

Net loss

Samantha Hogan,

capital,

July 1, 20Y9

Samantha Hogan,

capital,

July 31, 20Y9

Total assets

Total current assets

Total expenses

Total liabilities

Total liabilities and owners equity

Total property, plant, and equipment

Withdrawals

Post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected.

use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 20Y9

Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. You will not need to enter colons (:) on the income statement.

use the adjusted trial balance figures to prepare a statement of owners equity for the month ended July 31, 20Y9. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If the account balance is zero (0), enter a zero (0).

use the adjusted trial balance figures to prepare a balance sheet as of July 31, 20Y9.

. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all values as positive amounts. When entering assets, enter them in order of liquidity.

Prepare a post-closing trial balance.