50.1K

Verified Solution

Link Copied!

At June 30, 2017, the end of its most recent fiscal year, Ayayai Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $6,280 Accounts receivable 1,440 Supplies 830 Accounts payable $480 Unearned service revenue 1,340 Common stock 4,300 Retained earnings 2,430 $8,550 $8,550 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Ayayai conducted the following transactions during July 2017, and adjusts its accounts monthly July 1 Purchased equipment, paying $4,800 cash and signing a 2-year note payable for $24,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month. 2 Issued 24,000 shares of common stock for $60,000 cash. 3 Paid $4,200 cash for a 12-month insurance policy effective July 1. 3 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $4,800 per month. 6 Paid $4,600 for supplies. Visited client offices and agreed on the terms of a consulting project. Ayayai will bill the client, Connor Productions, on the 20th of each month for services performed. Collected $1,440 cash on account from Milani Brothers. This client was billed in June when Ayayai performed the service. Performed services for Fitzgerald Enterprises. This client paid $1,340 in advance last month. All services relating to this payment are now completed. 14 Paid $480 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $14,400 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $13,200. 20 Performed services worth $33,600 on account and billed customers. 20 Received a bill for $2,600 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $12,000 of revenue from the cash advance received July 16. 27 Received $18,000 cash from customers billed on July 20. Post to the ledger accounts.(Post entries in the order of journal entries presented in the previ Cash July 1 Bal. 6,280 July 1 Accounts Receivable July 1 Bal. 1,440 Prepaid Insurance Supplies July 1 bal. 830 Prepaid Rent Equipment Accounts Payable July 1 Bal. 480 Unearned Service Revenue July 1 Bal. 1,340 Notes Payable Common Stock July 1 Bal. 4,300 Retained Earnings July 1 Bal. 2,430 Service Revenue Salaries and Wages Expense Advertising Expense At June 30, 2017, the end of its most recent fiscal year, Ayayai Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $6,280 Accounts receivable 1,440 Supplies 830 Accounts payable $480 Unearned service revenue 1,340 Common stock 4,300 Retained earnings 2,430 $8,550 $8,550 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Ayayai conducted the following transactions during July 2017, and adjusts its accounts monthly July 1 Purchased equipment, paying $4,800 cash and signing a 2-year note payable for $24,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month. 2 Issued 24,000 shares of common stock for $60,000 cash. 3 Paid $4,200 cash for a 12-month insurance policy effective July 1. 3 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $4,800 per month. 6 Paid $4,600 for supplies. Visited client offices and agreed on the terms of a consulting project. Ayayai will bill the client, Connor Productions, on the 20th of each month for services performed. Collected $1,440 cash on account from Milani Brothers. This client was billed in June when Ayayai performed the service. Performed services for Fitzgerald Enterprises. This client paid $1,340 in advance last month. All services relating to this payment are now completed. 14 Paid $480 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $14,400 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $13,200. 20 Performed services worth $33,600 on account and billed customers. 20 Received a bill for $2,600 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $12,000 of revenue from the cash advance received July 16. 27 Received $18,000 cash from customers billed on July 20. Post to the ledger accounts.(Post entries in the order of journal entries presented in the previ Cash July 1 Bal. 6,280 July 1 Accounts Receivable July 1 Bal. 1,440 Prepaid Insurance Supplies July 1 bal. 830 Prepaid Rent Equipment Accounts Payable July 1 Bal. 480 Unearned Service Revenue July 1 Bal. 1,340 Notes Payable Common Stock July 1 Bal. 4,300 Retained Earnings July 1 Bal. 2,430 Service Revenue Salaries and Wages Expense Advertising Expense

Answer & Explanation Solved by verified expert

See Answer