Question

Len Gary started his own consulting firm, Gary Consulting, on June 1, 2022. The trial balance at June 30 is as follows. GARY CONSULTING Trial Balance June 30, 2022 Debit Credit Cash $6,850 Accounts Receivable 7.000 Supplies 2012 Prepaid Insurance 4,260 Equipment 15,000 Accounts Payable $4,250 Unearned Service Revenue 5,200 Common Stock 22,012 Service Revenue 8,300 Salaries and Wages Expense 4,000 Rent Expense 640 $39,762 $39,762 In addition to those accounts listed on the trial balance, the chart of accounts for Gary also contains the following accounts: Insurance Expense. Utilities Expense, and Supplies Expense. Other data: 1. Supplies on hand at June 30 total $720. 2. A utility bill for $190 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 $4,320 of unearned service revenue by the end of the month 5. Salaries of $1.260 are accrued at June 30.

Answer 1

Gary Consulting Journal entries Date Account 1 Supplies expense Supplies Credit Debit $ 1,292 Calculation =2,012-720 $ 1,292 2 $ 190 Utilities expense Accounts Payable $ 190 $ 355 -4,260/12 Insurance expense Prepaid Insurance $ 355 4 $ 4,320 Unearned Service Revenue Service Revenue $ 4,320 5 $ 1,260 Salaries and Wages expense Salaries and Wages Payable $ 1,260 $ 250 Depreciation expense Accumulated Depreciation-Equipment $ 250 7 $ 4,160 Accounts Receivable Service Revenue $ 4,160

Gary Consulting T Accounts Date Debit Date Cash Unadj Bal $ 6,850 Credit Credit Credit Date Debit Date Credit Accounts Receivable Unadj Bal $ 7,000 7 $ 4,160 Date Debit Date Supplies Unadj Bal $ 2,012 1 Date Debit Date Prepaid Insurance Unadj Bal $ 4,260 3 $ 1,292 $ 355 Bal. Bal. Bal. $ 6,850 Equipment Unadj Bal $ 15,000 Bal. $ 11,160 Accumulated Depreciation-Equipment Unadj Bal $ . 6 $ 250 $ 720 Accounts Payable Unadj Bal $ 4,250 2 $ 190 $ 3,905 Salaries and Wages Payable Unadj Bal $ - $ 1,260 Bal. Bal. $ 1,260 $ 15,000 Unearned Service Revenue Unadj Bal $ 5,200 $ 4,320 Bal. $ 250 Common Stock Unadj Bal $ 22,012 Bal. $ 4,440 Service Revenue Unadj Bal $ 8,300 4 $ 4,320 7 $ 4,160 4 880 $ 22,012 Bal. $ Salaries and Wages expense Unadj Bal $ 4,000 $ 1,260 Bal. Rent expense 640 Bal. $ 16,780 Depreciation expense Unadj Bal $ . 6 $ 250 Unadj Bal $ Insurance expense Unadj Bal $ . 3 $ 355 Bal. $ 250 Bal. $ 355 Bal. $ 5,260 Utilities expense Unadj Bal $ . 2 $ 190 Bal. $ 640 Supplies expense Unadj Bal $ 1 $ 1,292 Bal. $ 190 Bal. $ 1,292

Gary Consulting Account Names 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 Rent expense Depreciation expense Insurance expense Utilities expense Supplies expense Totals Adjusted TB Debit Credit 6,850 11,160 720 3,905 15,000 250 4,440 1,260 880 22,012 16,780 5,260 640 250 355 190 1,292 45,622 45,622