Textbook Problem

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:

Instructions

1. 1. 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.)

1. 2. Post the journal to a ledger of four-column accounts.
2. 3. Prepare an unadjusted trial balance.
3. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
   1. a. Insurance expired during July is $375.
   2. b. Supplies on hand on July 31 are $2,850.
   3. c. Depreciation of office equipment for July is $400.
   4. d. Accrued receptionist salary on July 31 is $140.
   5. e. Rent expired during July is $2,000.
   6. f. Unearned fees on July 31 are $3,000.
4. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.
5. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
6. 7. Prepare an adjusted trial balance.
7. 8. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
8. 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.
9. 10. Prepare a post-closing trial balance.