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You have been hired as anaccountant for KTZFIG Consulting Inc. This business was createdwhen some friends decided to make use of their newly minted collegedegrees and go into business together. The business was created onJuly 1, 2018. The company will have a fiscal year end of June30.   The initial formation transactions and earlypurchases for KTZFIG Consulting Inc. resulted in the balances thatare included in the first 2 columns of the Worksheet. (see theworksheet tab)

During July, the first monthof operations, the following transactions occurred:

Event

Borrowed 25,000 from the bankfor operating cash. The note has a 6% interest rate (simpleinterest) and is to be paid back in 5 years

Purchased office furniture for$9,865.

Paid $13,800 for 12 monthsrent on office space

Received $11,400 from SBoardInc. for work to be performed over the next 12 months.

Paid $1,275 forutilities.

Paid $8,975 for purchases ofsupplies previously made on account.

Performed services for variouscustomers for $12,750 cash and another $15,780 onaccount.

Collected $11,680 as paymentfor amounts previously billed.

Purchased $10,660 ofadditional office supplies on account.

Paid salaries to employeestotaling $3,850 for 1 week.

Dividends of $1,000 weredeclared and paid.

At the end of July, thefollowing additional information is available to help determinewhat adjustments are needed:

Additional work for customersof $5,980 has been performed during the last week of July but notyet billed

One month of interest hasaccrued on the note payable for the bank loan.

Supplies on hand are$4,785.

One month of the prepaid renthas been used up

One month of the services forSBoard Inc. has been performed (see above).

Salaries of $3,850 are paidevery Friday (for a 5 day work week). July 30, 2018 was aTuesday.

Depreciation expense for thecomputer equipment is $140 and for the office furniture is$120

SUGGESTED STEPS FOR COMPLETIONOF THE PROJECT:

Prepare journal entries torecord the July transactions given. Please refer to the Worksheettab for Account Titles you may need.

Add the July journal entryinformation to the Worksheet in the July columns. You can do thisin one of 2 ways - (1) Post the journal entries to ledger accountsusing T-accounts to represent ledger accounts and then use thosetotals to post to the worksheet or (2) use excel to add all entriesfor a particular account into the correct column in the worksheet(ie., add all cash debits from the journal entries into the cashdebit column for July entries). There is a tab to use for TAccounts if you want but the T Accounts are NOT required

Prepare an unadjusted trialbalance as of July 31, 2018. This will be part of the Worksheet youprepare. There is a tab in this file that you will use for this.Excel formulas must be used throughout the project to obtain fullcredit.

Prepare adjusting entries forthe month of July given the information provided.

Post the adjusting entries tothe Adjusting entries columns on the worksheet

Prepare an adjusted trialbalance as of July 31, 2018. This will be part of the Worksheet youprepare. There is a tab in this file that you will use forthis.

Prepare financial statementsfor the month ending July 31, 2018. (Income Statement, Statement ofRetained Earnings, Classified Balance Sheet ). Formatting isimportant and will be graded so be sure you use dollar signs andunderlines as appropriate. Also be sure you have headings andproper column usage for all statements. There is a tab for thesestatements. Heading are PARTIALLY completed for the 3statements.

Prepare closing entries forthe end of the period

Copy the Worksheet from the Worksheet tab to the Worksheetformulas tab and the Financial Statements from the FinancialStatements tab to the Financial Statements tab. Highlight theentire worksheet/financial statements area respecively and pressthe "ctrl" key and the "~" key. This will cause the formulas usedto display instead of the numbers. Save your file with the formulasdisplayed. Worksheet -KTZFIG Consulting Inc BEGINNING NUMBERS JULY ENTRIES UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE ACCOUNT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash 120,500 22,065 142,565 Accounts Receivable 4,100 4,100 Supplies 8,975 10,660 19,635 Prepaid Rent 13,800 13,800 Land 30,000 30,000 Computer Equipment 49,500 49,500 Accumulated Depreciation, Comp Equip Office Furniture 9,865 9,865 Accumulated Depreciation, Off Furn Accounts Payable 8,975 1,685 10,660 Salaries Payable Interest Payable Unearned Revenue 11,400 11,400 Long-term Notes Payable 25,000 25,000 Common Stock 200,000 200,000 Retained Earnings Dividends 1,000 1,000 Service Revenue 28,530 28,530 Salaries Expense 3,850 3,850 Rent Expense Supplies Expense Utilities Expense 1,275 1,275 Interest Expense Depreciation Expense, Comp Equip Depreciation Expense, OfficeFurniture 208,975 208,975 66,615 66,615 275,590       275,590