logistic_guy
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- Apr 17, 2024
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\(\displaystyle \text{Logan Krause}\) started her own consulting firm, \(\displaystyle \text{Krause Consulting}\), on May \(\displaystyle 1, 2017\). The trial balance at May \(\displaystyle 31\) is as follows.
In addition to those accounts listed on the trial balance, the chart of accounts for \(\displaystyle \text{Krause Consulting}\) also contains the following accounts and account numbers: No. \(\displaystyle 150\) Accumulated Depreciation—Equipment, No. \(\displaystyle 212\) Salaries and Wages Payable, No. \(\displaystyle 631\) Supplies Expense, No. \(\displaystyle 717\) Depreciation Expense, No. \(\displaystyle 722\) Insurance Expense, and No. \(\displaystyle 732\) Utilities Expense.
Other data:
\(\displaystyle \bold{1.}\) \(\displaystyle \$ 900\) of supplies have been used during the month.
\(\displaystyle \bold{2.}\) Utilities expense incurred but not paid on May \(\displaystyle 31, 2017, \$ 250\).
\(\displaystyle \bold{3.}\) The insurance policy is for \(\displaystyle 2\) years.
\(\displaystyle \bold{4.}\) \(\displaystyle \$ 400\) of the balance in the unearned service revenue account remains unearned at the end of the month.
\(\displaystyle \bold{5.}\) May \(\displaystyle 31\) is a Wednesday, and employees are paid on Fridays. \(\displaystyle \text{Krause Consulting}\) has two employees, who are paid \(\displaystyle \$ 920\) each for a \(\displaystyle 5\)-day work week.
\(\displaystyle \bold{6.}\) The office furniture has a \(\displaystyle 5\)-year life with no salvage value. It is being depreciated at \(\displaystyle \$ 190\) per month for \(\displaystyle 60\) months.
\(\displaystyle \bold{7.}\) Invoices representing \(\displaystyle \$ 1,700\) of services performed during the month have not been recorded as of May \(\displaystyle 31\).
Instructions
\(\displaystyle \bold{(a)}\) Prepare the adjusting entries for the month of May. Use \(\displaystyle \text{J4}\) as the page number for your journal.
\(\displaystyle \bold{(b)}\) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.
\(\displaystyle \bold{(c)}\) Prepare an adjusted trial balance at May \(\displaystyle 31, 2017\).
In addition to those accounts listed on the trial balance, the chart of accounts for \(\displaystyle \text{Krause Consulting}\) also contains the following accounts and account numbers: No. \(\displaystyle 150\) Accumulated Depreciation—Equipment, No. \(\displaystyle 212\) Salaries and Wages Payable, No. \(\displaystyle 631\) Supplies Expense, No. \(\displaystyle 717\) Depreciation Expense, No. \(\displaystyle 722\) Insurance Expense, and No. \(\displaystyle 732\) Utilities Expense.
Other data:
\(\displaystyle \bold{1.}\) \(\displaystyle \$ 900\) of supplies have been used during the month.
\(\displaystyle \bold{2.}\) Utilities expense incurred but not paid on May \(\displaystyle 31, 2017, \$ 250\).
\(\displaystyle \bold{3.}\) The insurance policy is for \(\displaystyle 2\) years.
\(\displaystyle \bold{4.}\) \(\displaystyle \$ 400\) of the balance in the unearned service revenue account remains unearned at the end of the month.
\(\displaystyle \bold{5.}\) May \(\displaystyle 31\) is a Wednesday, and employees are paid on Fridays. \(\displaystyle \text{Krause Consulting}\) has two employees, who are paid \(\displaystyle \$ 920\) each for a \(\displaystyle 5\)-day work week.
\(\displaystyle \bold{6.}\) The office furniture has a \(\displaystyle 5\)-year life with no salvage value. It is being depreciated at \(\displaystyle \$ 190\) per month for \(\displaystyle 60\) months.
\(\displaystyle \bold{7.}\) Invoices representing \(\displaystyle \$ 1,700\) of services performed during the month have not been recorded as of May \(\displaystyle 31\).
Instructions
\(\displaystyle \bold{(a)}\) Prepare the adjusting entries for the month of May. Use \(\displaystyle \text{J4}\) as the page number for your journal.
\(\displaystyle \bold{(b)}\) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.
\(\displaystyle \bold{(c)}\) Prepare an adjusted trial balance at May \(\displaystyle 31, 2017\).
