P4-2B
Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2012.
The trial balance at May 31 is as shown below.;
QUINN
CONSULTING
Trial
Balance May 31, 2012;
Debit
Credit Cash $ 7,500
Accounts
Receivable 3,000
Prepaid
Insurance 3,600
Supplies
2,500
Equipment
12,000
Accounts
Payable $ 3,500
Unearned
Service Revenue 4,000
Common
Stock 19,100
Service
Revenue 7,500
Salaries
and Wages Expense 4,000
Rent
Expense 1,500 $34,100 $34,100;
In
addition to those accounts listed on the trial balance, the chart of accounts
for Quinn Consulting also contains the following accounts:
Accumulated
Depreciation?
Equipment,
Salaries
and Wages Payable,
Depreciation
Expense,
Insurance
Expense,
Utilities
Expense, and Supplies Expense.
Other
data:
1.
$750 of supplies have been used during the month.
2.
Utility costs incurred but not paid are $260.
3.
The insurance policy is for 2 years.
4.
$1,500 of the balance in the Unearned Service
Revenue
account remains unearned at the end of the month.
5.
Assume May 31 is a Thursday and employees are paid on Fridays. Quinn
Consulting has two employees that are paid $600 each for a 5-day work week.
6.
The equipment has a 5-year life with no salvage value and is being depreciated
at $200 per month for 60 months.
7.
Invoices representing $1,980 of services performed during the month have not
been recorded as of May 31.
Instructions
(a)
Prepare the adjusting entries for the month of May.
(b)
Post the adjusting entries to the ledger accounts. Enter the totals from the
trial balance as beginning account balances. Use T accounts.
(c)
Prepare an adjusted trial balance at May 31, 2012.;
TUTORIAL PREVIEW
|
|
Date
|
Account Titles
|
Debit
|
Credit
|
|
|
2012
|
Supplies
Expense
|
750
|
|
|
1
|
31-May
|
Supplies
|
|
750
|
|
|
|
|
|
|
|
2
|
31
|
Utilities
Expense
|
260
|
|
|
|
|
Accounts Payable
|
|
260
|
File name P4-2B Pamela Quinn
consulting.xlsx File type: xlsx PRICE:$15
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