Class-Question-4-2a-KUMAR-CONSULTING

Len Kumar started his own consulting firm, Kumar Consulting, on June 1, 2017. The trial balance at June 30 is as follows.

KUMAR CONSULTING
Trial Balance
June 30, 2017
Debit Credit
Cash $ 6,850
Accounts Receivable 7,000
Supplies 1,972
Prepaid Insurance 2,520
Equipment 15,000
Accounts Payable $ 4,220
Unearned Service Revenue 5,200
Common Stock 21,972
Service Revenue 8,300
Salaries and Wages Expense 4,000
Rent Expense 2,350

$39,692

$39,692

In addition to those accounts listed on the trial balance, the chart of accounts for Kumar 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 $210 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 $4,220 of unearned service revenue by the end of the month.
5. Salaries of $1,400 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 $4,210 of services performed during the month have not been recorded as of June 30.

Prepare the adjusting entries for the month of June. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

5.

6.

7.

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Use T-Accounts.) (Post entries in the order of journal entries presented in the previous question.)

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Accumulated Depreciation-Equipment

Accounts Payable

Salaries and Wages Payable

Unearned Service Revenue

Common Stock

Service Revenue

Salaries and Wages Expense