Ken Lumas started his own consulting firm, Lumas
Consulting, on June 1, 2014. The trial balance at June 30 is as follows.
Complete Financial Accounting problem below:
Ken Lumas started his own consulting firm, Lumas
Consulting, on June 1, 2014. The trial balance at June 30 is as follows.
LUMAS
CONSULTING
Trial Balance
June 30, 2014
|
Debit
|
Credit
|
||||
|
Cash
|
$
6,850
|
||||
|
Accounts
Receivable
|
7,000
|
||||
|
Supplies
|
2,000
|
||||
|
Prepaid
Insurance
|
2,880
|
||||
|
Equipment
|
15,000
|
||||
|
Accounts
Payable
|
$ 4,230
|
||||
|
Unearned
Service Revenue
|
5,200
|
||||
|
Common Stock
|
22,000
|
||||
|
Service
Revenue
|
8,300
|
||||
|
Salaries and
Wages Expense
|
4,000
|
||||
|
Rent Expense
|
2,000
|
|
|||
|
$39,730 4
|
$39,730
|
||||
In addition to those accounts listed on the trial
balance, the chart of accounts for Lumas also contains the following accounts:
Accumulated Depreciation—Equipment, Salaries and Wages Payable, Depreciation
Expense, Insurance Expense, Utilities Expense, and Supplies Expense.
Other data:
1. Supplies on hand at June 30 total $720.
2. A utility bill for $180 has not been recorded
and will not be paid until next month.
3. The insurance policy is for a year.
4. Services were performed for $4,100 of unearned
service revenue by the end of the month.
5. Salaries of $1,250 are accrued at June 30.
6. The equipment has a 5-year life with no salvage
value and is being depreciated at $250 per month for 60 months.
7. Invoices representing $3,900 of services
performed during the month have not been recorded as of June 30.
Instructions
(a)Prepare the adjusting entries for the month of
June.
(b)Post the adjusting entries to the ledger
accounts. Enter the totals from the trial balance as beginning account
balances. (Use T-accounts.)
(b) Service rev. $16,300
(c)Prepare an adjusted trial balance at June 30,
2014.
(c) Tot. trial balance $45,310
TUTORIAL PREVIEW
PART 1
|
|
Date
|
Account Titles
|
Debit
|
Credit
|
|
|
2014
|
Supplies Expense
|
1,280
|
|
|
1
|
30-Jun
|
Supplies ($2,000 – $720)
|
|
1,280
|
|
|
|
|
|
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File name: Lumas consulting.xls File type: .doc PRICE: $20
