For the past several years, Jolene Upton has operated a part-time consulting business

from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate
the business, which was to be known as Gourmet Consulting, on a full-time basis.
Gourmet Consulting entered into the following transactions during July:
July 1
The following assets were received from Jolene Upton: cash, $19,000; accounts
receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no
liabilities received.
1 Paid three months’ rent on a lease rental contract, $6,000.
2 Paid the premiums on property and casualty insurance policies, $4,500.
4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,0
5 Purchased additional office equipment on account from Office Necessities Co., $5,100.
6 Received cash from clients on account, $12,750.
10 Paid cash for a newspaper advertisement, $500.
12 Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
12 Provided services on account for the period July 1–12, $14,200.
14 Paid receptionist for two weeks’ salary, $1,500.
Record the following transactions on Page 2 of the journal:
17 Received cash from cash clients for fees earned during the period July 1–17, $10,400.
18 Paid cash for supplies, $1,000.
20 Provided services on account for the period July 13–20, $9,000.
24 Received cash from cash clients for fees earned for the period July 17–24, $8,500.
26 Received cash from clients on account, $12,000.
27 Paid receptionist for two weeks’ salary, $1,500.
29 Paid telephone bill for July, $325.
31 Paid electricity bill for July, $675.
31 Received cash from cash clients for fees earned for the period July 25–31, $7,100.
31 Provided services on account for the remainder of July, $5,500.
31 Jolene withdrew $20,000 for personal use.

Instructions :
Journalize each transaction in a two-column journal starting on Page 1, referring to the
1 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 31
12 Accounts Receivable 32
14 Supplies 41 `
15 Prepaid Rent 51
16 Prepaid Insurance 52
18 Office Equipment 53
19 Accumulated Depreciation—Office Equipment 54
21 Accounts Payable 55
22 Salaries Payable 59
23 Unearned Fees
2 Post the journal to a ledger of four-column accounts.
3 Prepare an unadjusted trial balance.
4 At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and
a. Insurance expired during July is $375.
b. Supplies on hand on July 31 are $2,850.
c. Depreciation of office equipment for July is $400.
d. Accrued receptionist salary on July 31 is $140.
e. Rent expired during July is $2,000.
f. Unearned fees on July 31 are $3,000.
5 (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.
6 Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
7 Prepare an adjusted trial balance.
8 Prepare an income statement, a statement of owner’s equity, and a balance sheet.
9 Prepare and post the closing entries. Record the closing entries on Page 4 of the journal.
Indicate closed accounts by inserting a line in both Balance columns opposite the closing
entry.

10 Prepare a post-closing trial balance.

d recorded it as unearned fees, $8,000.

Jolene Upton, Capital

Jolene Upton, Drawing
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
ese data to complete parts (5) and (6).

mplete the spreadsheet.

 JOURNAL
Page 1
Post.
Date Description Debit Credit Date Description
Ref.
2019 2019
July 1 Cash 11 19,000 July 17 Cash
Accounts Receivable 12 22,300
Supplies 14 3,800
Office Equipment 18 8,900 18 Supplies
Jolene Upton, Capital 31 54,000

1 Prepaid Rent 15 6,000 20 Accounts Receivable

Cash 11 6,000

2 Prepaid Insurance 16 4,500 24 Cash

Cash 11 4,500

4 Cash 11 8,000 26 Cash

Unearned Fees 23 8,000

5 Office Equipment 18 5,100 27 Salary Expense

Accounts Payable 21 5,100

6 Cash 11 12,750 29 Miscellaneous Expen

Accounts Receivable 12 12,750

10 Miscellaneous Expense 59 500 31 Miscellaneous Expen

Cash 11 500

12 Accounts Payable 21 3,000 31 Cash

Cash 11 3,000

12 Accounts Receivable 12 14,200 31 Accounts Receivable

Fees Earned 41 14,200

14 Salary Expense 51 1,500 31 Jolene Upton, Drawin

Cash 11 1,500
 JOURNAL
Page 2
Post.
Description
Ref. Debit Credit

11 10,400
Fees Earned 41 10,400

Supplies 14 1,000
Cash 11 1,000

Accounts Receivable 12 9,000

Fees Earned 41 9,000

11 8,500
Fees Earned 41 8,500

11 12,000
Accounts Receivable 12 12,000

Salary Expense 51 1,500

Cash 11 1,500

Miscellaneous Expense 59 325

Cash 11 325

Miscellaneous Expense 59 675

Cash 11 675

11 7,100
Fees Earned 41 7,100

Accounts Receivable 12 5,500

Fees Earned 41 5,500

Jolene Upton, Drawing 32 20,000

Cash 11 20,000
Account : Cash Number : 11
Date Item Post. Debit Credit Balance
Ref. Debit Credit
2019
July 1 1 19,000 19,000
1 1 6,000 13,000
2 1 4,500 8,500
4 1 8,000 16,500
6 1 12,750 29,250
10 1 500 28,750
12 1 3,000 25,750
14 1 1,500 24,250
17 2 10,400 34,650
18 2 1,000 33,650
24 2 8,500 42,150
26 2 12,000 54,150
27 2 1,500 52,650
29 2 325 52,325
31 2 675 51,650
31 2 7,100 58,750
31 2 20,000 38,750

Account : Accounts Receivable Number : 12

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 1 1 22,300 22,300
6 1 12,750 9,550
12 1 14,200 23,750
20 2 9,000 32,750
26 2 12,000 20,750
31 2 5,500 26,250

Account : Supplies Number : 14

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 1 1 3,800 3,800
18 2 1,000 4,800
31 Adjusting 3 1,950 2,850
Account : Prepaid Rent Number : 15
Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 1 1 6,000 6,000
31 Adjusting 3 2,000 4,000

Account : Prepaid Insurance Number : 16

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 2 1 4,500 4,500
31 Adjusting 3 375 4,125

Account : Office Equipment Number : 18

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 1 1 8,900 8,900
5 1 5,100 14,000

Account : Accumulated Depreciation—Office Equipment Number : 19

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 400 400

Account : Accounts Payable Number : 21

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 5 1 5,100 5,100
12 1 3,000 2,100

Account : Salaries Payable Number : 22

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 140 140

Account : Unearned Fees Number : 23

Post. Balance
Date Item Debit Credit
 Date Item Debit Credit
Ref. Debit Credit
2019
July 4 1 8,000 8,000
31 Adjusting 3 5,000 3,000

Account : Jolene Upton, Capital Number : 31

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 1 1 54,000 54,000
31 Closing 4 50,335 104,335
31 Closing 4 20,000 84,335

Account : Jolene Upton, Drawing Number : 32

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 2 20,000 20,000
31 Closing 4 20,000 -

Account : Fees Earned Number : 41 `

Date Item Post. Debit Credit Balance
Ref. Debit Credit
2019
July 12 1 14,200 14,200
17 2 10,400 24,600
20 2 9,000 33,600
24 2 8,500 42,100
31 2 7,100 49,200
31 2 5,500 54,700
31 Adjusting 3 5,000 59,700
31 Closing 4 59,700 -

Account : Salary Expense Number : 51

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 14 1 1,500 1,500
27 2 1,500 3,000
31 Adjusting 3 140 3,140
31 Closing 4 3,140 -
Account : Rent Expense Number : 53
Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 2,000 2,000
31 Closing 4 2,000 -

Account : Supplies Expense Number : 53

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 1,950 1,950
31 Closing 4 1,950 -

Account : Depreciation Expense Number : 54

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 400 400
31 Closing 4 400 -

Account : Insurance Expense Number : 55

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 31 Adjusting 3 375 375
31 Closing 4 375 -

Account : Miscellaneous Expense Number : 59

Post. Balance
Date Item Debit Credit
Ref. Debit Credit
2019
July 10 1 500 500
29 2 325 825
31 2 675 1,500
31 Closing 4 1,500 -
 Gourmet Consulting
Unadjusted Trial Balance
July 31, 2019
Debit Credit
Balances Balances
Cash 38,750
Accounts Receivable 26,250
Supplies 4,800
Prepaid Rent 6,000
Prepaid Insurance 4,500
Office Equipment 14,000
Accumulated Depreciation—Office Equipment -
Accounts Payable 2,100
Salaries Payable -
Unearned Fees 8,000
Jolene Upton, Capital 54,000
Jolene Upton, Drawing 20,000
Fees Earned 54,700
Salary Expense 3,000
Rent Expense -
Supplies Expense -
Depreciation Expense -
Insurance Expense -
Miscellaneous Expense 1,500
118,800 118,800
 Gourmet Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2019
Unadjusted Adjusted
Adjustments
Trial Balance Trial Balance
Account Title Debit Credit Debit Credit Debit
Cash 38,750 - 38,750
Accounts Receivable 26,250 - 26,250
Supplies 4,800 - b 1,950 2,850
Prepaid Rent 6,000 - e 2,000 4,000
Prepaid Insurance 4,500 - a 375 4,125
Office Equipment 14,000 - 14,000
Accum. Depreciation - - c 400
Accounts Payable - 2,100
Salaries Payable - - d 140
Unearned Fees - 8,000 f 5,000
Jolene Upton, Capital - 54,000
Jolene Upton, Drawing 20,000 - 20,000
Fees Earned - 54,700 f 5,000
Salary Expense 3,000 - d 140 3,140
Rent Expense - - e 2,000 2,000
Supplies Expense - - b 1,950 1,950
Depreciation Expense - - c 400 400
Insurance Expense - - a 375 375
Miscellaneous Expense 1,500 - 1,500
118,800 118,800 9,865 9,865 119,340
Net income
ulting
et (Work Sheet)
July 31, 2019
Adjusted Income
Balance Sheet
Trial Balance Statement
Credit Debit Credit Debit Credit
38,750
26,250
2,850
4,000
4,125
14,000
400 400
2,100 2,100
140 140
3,000 3,000
54,000 54,000
20,000
59,700 59,700
3,140
2,000
1,950
400
375
1,500
119,340 9,365 59,700 109,975 59,640
50,335 50,335
59,700 59,700 109,975 109,975
 ADJUSTMENT
Page 3
Post.
Date Description Debit Credit
Ref.
2019 Adjusting Entries
a July 31 Insurance Expense 55 375
Prepaid Insurance 16 375
Insurance expired.

b 31 Supplies Expense 53 1,950

Supplies 14 1,950
Supplies used ($4,800 – $2,850).

c 31 Depreciation Expense 54 400

Accumulated Depreciation 19 400
Equipment depreciation.

d 31 Salary Expense 51 140

Salaries Payable 22 140
Accrued salaries.

e 31 Rent Expense 52 2,000

Prepaid Rent 15 2,000
Rent expired.

f 31 Unearned Fees 23 5,000

Fees Earned 41 5,000
Unearned fees earned
($8,000 – $3,000).
 Gourmet Consulting
Adjusted Trial Balance
July 31, 2019
Debit Credit
Balances Balances
Cash 38,750
Accounts Receivable 26,250
Supplies 2,850
Prepaid Rent 4,000
Prepaid Insurance 4,125
Office Equipment 14,000
Accumulated Depreciation—Office Equipment 400
Accounts Payable 2100
Salaries Payable 140
Unearned Fees 3000
Jolene Upton, Capital 54000
Jolene Upton, Drawing 20,000 0
Fees Earned 59700
Salary Expense 3,140 0
Rent Expense 2,000 0
Supplies Expense 1,950 0
Depreciation Expense 400 0
Insurance Expense 375 0
Miscellaneous Expense 1,500 0
119,340 119,340
 Gourmet Consulting
Income Statement
For the Month Ended July 31, 2019
Fees earned 59,700
Expenses:
Salary expense 3,140
Rent expense 2,000
Supplies expense 1,950
Depreciation expense 400
Insurance Expense 375
Miscellaneous expense 1,500
Total expenses 9,365
Net income 50,335

Gourmet Consulting
Statement of Owner’s Equity
For the Month Ended July 31, 2019
Jolene Upton, capital, July 1, 2016 -
Investments during month 54,000
Net income 50,335
104,335
Less withdrawals (20,000)
Increase in owner’s equity 84,335
Jolene Upton, capital, July 31, 2016 84,335
 Gourmet Consulting
Balance Sheet
July 31, 2019
Assets Liabilities
Current assets: Current liabilities:
Cash 38,750 Accounts payable 2,100
Accounts receivable 26,250 Salaries payable 140
Supplies 2,850 Unearned fees 3,000
Prepaid rent 4,000 Total liabilities
Prepaid insurance 4,125
Total current assets 75,975
Property, plant, and equipment:
Office equipment 14,000 Owner’s Equity
Less accum. depreciation (400) Jolene Upton, capital
Total property, plant, and
equipment 13,600 Total liabilities and owner’s
Total assets 89,575 equity
 5,240

84,335

89,575
 CLOSING ENTRIES
Page 4
Post.
Date Description Debit Credit
Ref.
2019 Closing Entries
July 31 Fees Earned 41 59,700
Salary Expense 51 3,140
Rent Expense 52 2,000
Supplies Expense 53 1,950
Depreciation Expense 54 400
Insurance Expense 55 375
Miscellaneous Expense 59 1,500
Jolene Upton, Capital 31 50,335

31 Jolene Upton, Capital 31 20,000

Jolene Upton, Drawing 32 20,000
 Gourmet Consulting
Post Closing Trial Balance
July 31, 2019
Debit Credit
Balances Balances
Cash 38,750
Accounts Receivable 26,250
Supplies 2,850
Prepaid Rent 4,000
Prepaid Insurance 4,125
Office Equipment 14,000
Accumulated Depreciation—Office Equipment 400
Accounts Payable 2,100
Salaries Payable 140
Unearned Fees 3,000
Jolene Upton, Capital 84,335
89,975 89,975