Accounting Cycle Problem

Question Description

Financial Accounting. Details are in the file.

At June 30, 2022, the end of its most recent fiscal year, Blue Computer Consultants’ post-closing trial balance was as follows:

	Debit	Credit
Cash	$3,970
Accounts receivable	910
Supplies	520
Accounts payable		$300
Unearned service revenue		850
Common stock		2,700
Retained earnings		1,550
	$5,400	$5,400

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2022, and adjusts its accounts monthly.

July	1	Purchased equipment, paying $2,800 cash and signing a 2-year note payable for $15,200. 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 15,200 shares of common stock for $38,000 cash.
	3	Paid $3,000 cash for a 12-month insurance policy effective July 1.
	3	Paid the first 2 (July and August 2022) months’ rent for an annual lease of office space for $3,000 per month.
	6	Paid $2,900 for supplies.
	9	Visited client offices and agreed on the terms of a consulting project. Blue will bill the client, Connor Productions, on the 20th of each month for services performed.
	10	Collected $910 cash on account from Milani Brothers. This client was billed in June when Blue performed the service.
	13	Performed services for Fitzgerald Enterprises. This client paid $850 in advance last month. All services relating to this payment are now completed.
	14	Paid $300 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 $9,100 cash in advance for future services to be performed.
	18	Paid semi-monthly salaries for $8,400.
	20	Performed services worth $21,300 on account and billed customers.
	20	Received a bill for $1,700 for advertising services received during July. The amount is not due until August 15.
	23	Performed the first phase of the project for Thunder Bay Technologies. Recognized $7,600 of revenue from the cash advance received July 16.
	27	Received $11,400 cash from customers billed on July 20.



^{Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."}

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.