## Instructions### BackgroundFor the past several years, Steffy Lopez has operated a part-time consulting business from her home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July:### Transactions**July 1:**- The following assets were received from Steffy Lopez in exchange for common stock: - Cash: $13,500 - Accounts receivable: $20,800 - Supplies: $3,200 - Office equipment: $7,500- There were no liabilities received.**July 1:**- Paid two months' rent on a lease rental contract, $4,800.**July 2:**- Paid the premiums on property and casualty insurance policies, $4,500.**July 5:**- Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500.**July 5:**- Purchased additional office equipment on account from Office Station Co., $6,500.**July 6:**- Received cash from clients on account, $15,300.**July 10:**- Paid cash for a newspaper advertisement, $400.**July 12:**- Paid Office Station Co. for part of the debt incurred on July 5, $5,200.**July 12:**- Recorded services provided on account for the period July 1–12, $13,300.**July 14:**- Paid receptionist for two weeks’ salary, $1,750.**July 17:**- Recorded cash from cash clients for fees earned during the period July 1–17, $9,450.**July 18:**- Paid cash for supplies, $600.**July 20:**- Recorded services provided on account for the period July 13–20, $6,650.**July 24:**- Recorded cash from cash clients for fees earned for the period July 17–24, $4,000.**July 26:**- Received cash from clients on account, $12,000.**July 27:**- Paid receptionist for two weeks’ salary, $1,750.** **Journalizing the Closing Entries**This entry demonstrates how to properly document closing entries in an accounting journal. Below is a table structure that accountants use to ensure accurate financial recordkeeping. **Journal Structure:**| **DATE** | **DESCRIPTION** | **POST. REF.** | **DEBIT** | **CREDIT** | **ASSETS** | **LIABILITIES** ||----------|----------------|----------------|-----------|------------|------------|-----------------|| | Closing Entries| | | | | || | | | | | | || | | | | | | || | | | | | | |**Explanation:**1. **Date**: This column records the date of each transaction.2. **Description**: Describes the nature of the entry. Here, it indicates "Closing Entries."3. **Post. Ref.**: A reference number used to post entries to ledgers.4. **Debit and Credit Columns**: These columns track the amounts debited and credited for the closing entries.5. **Assets and Liabilities**: Used to reflect changes in asset and liability accounts resulting from the closing entries.This format ensures clarity and consistency in financial reporting.

Closing Entries - Closing Entries are required to close the temporary accounts of the income…

Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: Jul. Jul. 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500; accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received. Paid two months' rent on a lease rental contract, $4,800. 1 2 4 5 6 Received cash from clients on account, $15,300. Paid cash for a newspaper advertisement, $400. Paid Office Station Co. for part of the debt incurred on July 5, $5,200. Recorded services provided on account for the period July 1-12. $13,300. 14 Paid receptionist for two weeks' salary, $1,750. 10 12 12 17 Recorded cash from cash clients for fees earned during the period July 1-17, $9,450. Paid cash for supplies, $600. 18 20 Paid the premiums on property and casualty insurance policies, $4,500. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500. Purchased additional office equipment on account from Office Station Co., $6,500. 24 26 27 Recorded services provided on account for the period July 13-20. $6,650. 31 Required: Recorded cash from cash clients for fees earned for the period July 17- 24, $4,000. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25- 31, $5,200. Received cash from clients on account, $12,000. Paid receptionist for two weeks' salary, $1,750. 31 Recorded services provided on account for the remainder of July, $3,000. Paid dividends, $12,500. At the end of July, the following adjustment data were assembled. (a) Insurance expired during July is $375. (b) Supplies on hand on July 31 are $1,525. (c) Depreciation of office equipment for July is $750. (d) Accrued receptionist salary on July 31 is $175. (e) Rent expired during July is $2,400. (1) Unearned fees on July 31 are $2,750.