At June 30 2015 the end of its most recent fiscal year Red R

At June 30, 2015, the end of its most recent fiscal year, Red River Computer Consultants Ltd.\'s post-closing trial balance was as follows:

- Expiry of insurance coverage (see July 3 transaction)

- Adjustment of prepaid rent (see July 3 transaction)

- Supplies used, $1,250 (see July 6 transaction)

- Equipment depreciation (see July 7 transaction)

- Accrual of interest on bank loan (see July 7 transaction)

- Salaries for the second half of July, $11,000, to be paid on August 1

- Estimated utilities expense for July, $800 (invoice to be received in August)

- Income tax for July, $1,200, to be paid in August

Solution

journal entries

july 2 CASH A/C DR.$50000

TO STOCK A/C $50000

JULY 3. INSURANCE A/C DR. $3600

TO CASH A/C $3600

JULY 3 PREPAID RENT A/C DR. $8000

TO CASH $8000

JULY 6 PURCHASE A/C DR. $ 3800

TO CASH $3800