PR $4-5$A Complete accounting cycle

For the past several years, steffy Lopez has operated a part$-$time consulting business $f_{r_0},\frac{5}{?},A$

home. As of July $1,20$Y$2,$ Steffy decided to move to rented quarters and to operate the $b_{hs}$

ness, which was to be known as Diamond Consulting, on a fuil tion enter

into

into the following transactions during July:

July $1.$ The following assets were received from steffy Lopez as an investment in Diamond Consulting: $c_{cssh},$

$$13,500$; accounts receivable, $$20,800$; supplies, $$3,200$; and office equipmole

liabilities received.

Paid two months' rent on a lease rental contract, $$4,800.$

Paid the annual premiums on property and casualty insurance policies, $$4,500.$

Received cash from clients as an advance payment for services to be provided, and recorded it as

unearned fees, $$5,500.$

Purchased additional office equipment on account from Office Station Co$.,$ $$6,500.$

Received cash from clients on account, $$15,300.$

Paid cash for a newspaper advertisement, $$400.$

Paid Office Station Co$.$ for part of the debt incurred on July $5,$$$5,200.$

Recorded services provided on account for the period July $1-12,$$$13,300.$

Paid receptionist for two weeks' salary, $$1,750.$

Record the following transactions on Page $2$ of the journal:

Recorded cash from cash clients for fees earned during the period July $1-17,$$$9,450.$

Paid cash for supplies, $$600.$

Recorded services provided on account for the period July $13-20,$$$6,650.$

Recorded cash from cash clients for fees earned for the period July $17-24,$ $$4,000.$

Received cash from clients on account, $$12,000.$

Paid receptionist for two weeks' salary, $$1,750.$

Paid telephone bill for July, $$325.$

Paid electricity bill for July, $$675.$

Recorded cash from cash clients for fees earned for the period July $25-31,$$$5,200.$

Recorded services provided on account for the remainder of July, $$3,000.$

Paid cash to Steffy Lopez for personal use, $$12,500.$

Instructions

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.$)$

$11$ Cash

$12$ Accounts Receivabile

$14$ Supplies

$31$ Steffy Lopez, Capital

$15$ Prepaid Rent

$32$ Steffy Lopez, Drawing

$16$ Prepaid Insurance

$41$ Fees Earned

$18$ Office Equipment

$51$ Salary Expense

$19$ Accumulated Depreciation

$52$ Rent Expense

$21$ Accounts Payable

$53$ Supplies Expense

$22$ Salaries Payable

$54$ Depreciation Expense

$23$ Unearned Fees

$55$ Insurance Expense

$59$ Miscellaneous Expense

Post the journal to a ledger of four$-$column accounts.

Prepare an unadjusted trial balance.