Question

Michelle Walker started her own consulting firm, Walker Consulting, on May 1, 2020. The trial balance at May 31 is as follows. WALKER CONSULTING Trial Balance May 31, 2020 Account Number Debit Credit Cash $4,400 Accounts Receivable 6,200 Supplies Prepaid Insurance 1.900 4,800 12,000 Equipment Accounts Payable $ 4.800 Unearned Service Revenue Owner's Capital 2,100 19,700 7.500 Service Revenue Salaries and Wages Expense 3.400 Rent Expense 1.400 $34,100 $34,100

Answer 1

Walker Consulting Adjusting Enteries Date Particulars 31.5.2020 Supplies Expense a/c To Supplies (Supplies expensed) Dr. Debit in $ Credit in $ 800 800 Dr. 31.5.2020 Utilities Expense a/c To Accounts Payable (Expense accrued) 300 31.5.2020 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 4800 / 24 200 1700 31.5.2020 Unearned Service Revenue a/c Dr, To Service Revenue (Revenue recognized) 2100 - 400 1700 1320 31.5.2020 Salaries and Wages Expense a/c Dr. To Salaries and Wages Payable (Salaries accrued) 1100 x 2 x 3/5 1320 31.5.2020 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 200 Dr. 1700 31.5.2020 Accounts Receivable a/c To Service Revenue (Revenue accrued) 1700

Worksheet For the period ending 31.5.2020 Acct. No. Particulars 101 Cash 112 Accounts Receivable 126 Supplies 130 Prepaid Insurance 149 Equipment 150 Accum. Depre - Equip. 201 Accounts Payable 209 Unearned Service Revenue 212 Salaries and Wages Payable 301 Owner's Capital 400 Service Revenue Supplies Expense 717 Depreciation Expense 722 Insurance Expense 726 Salaries and Wages Expense 729 Rent Expense 732 Utilities Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 4400 4400 6200 1700 7900 1900 800 1100 4800 200 4600 12000 12000 200 200 4800 300 5100 2100 1700 400 1320 1320 19700 19700 7500 3400 10900 800 800 200 200 200 200 3400 1320 4720 1400 1400 300 300 34100 34100 6220 6220 37620 37620 631

10900 Statement of Income For the period ending 31.5.2020 Service Revenue Less: Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Utilities Expense Net Income 800 200 200 4720 1400 300 7620 3280 Statement of Owner's Capital For the period ending 31.5.2020 Owner's Capital Net Income 19700 3280 22980

Balance sheet As at 31.5.2020 Assets Current Assets Amounts in $ Amounts in $ Cash Amounts in $ Amounts in $ Liabilities Current Liabilities 4400 Accounts Payable 7900 Unearned Service Revenue 1100 Salaries and Wages Payable 4600 18000 Accounts Receivable Supplies Prepaid Insurance 5100 400 1320 6820 Non Current Assets Equipment Accum. Depre - Equip Total Assets 12000 -200 Owner's Equity 11800 Owner's Capital 29800 Tota Liabilities & Equity 22980 29800