Question

Question 4 --/1 View Policies Current Attempt in Progress Len Kumar started his own consulting firm, Concord Corporation, on June 1, 2017. The June transactions resulted in a tabular summary, with June 30 unadjusted balances shown here. Assets Liabilities + Stockholders' Equity Accts. Prepd. Acc. Depr- Accts. Unearn. Sal./Wages Com. Retained Earnings Cash + Rec. + Supplies + Insur. + Equip.- Equip. = Pay. + Serv. Rev. + Pay. + Stock + Rev. - Exp. - Div Bal. 6,850 + 7,000 + 2,007 + 3,120 + 15,000 - 0 = 4,250 + 5,200 + 0 + 22,007 + 8,300 - 5,780 - 0 Record adjustments for the month of June that reflect the following data. Provide explanations for specific revenue and expense accounts in the right-most column. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 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 $4,330 of unearned service revenue by the end of the month. 5. Salaries of $1,330 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 $4,340 of services performed during the month have not been recorded as of June 30.

Answer 1

Assets Liabilities Unearn. Cash + Accts. + Supplies + Insurance Prepaid Accts. *** + Ser. + Rec. Acc. + Equip. - Depr. = Equip. $15,000 SO Pay. Rev. Sal./wages pay. - SO Bal. $6.850 $7.000 $3,120 $4,250 $5,200 $2.007 -$1,287 Stockholders' Equity Retained Earnings Common " + Revenue - Expenses - Dividends Stock $22,007 $8,300 $5.780 SO $1.287 $190 $260 $4,330 $1,330 $250 $4.340 $22.007 $16,970 $9.097 $190 -$260 -$4,330 $1.330 $250 $4.340 $11.340 Total $6,850 $720 $2.860 $15,000 $250 $4.440 870 $1,330 Accounting Equation: Assets $36,520 (S6,850 + $11,340 + $720 + $2.860 + $15,000 - $250) Liabilities $6,640 ($4,4470 + $870+ $1,330) Stockholders' Equity $29,880 (S22,007 + $16,970 - $9,097)