Question

Sadie Cuono started her own consulting firm, Cuono Consulting, on May 1, 2020. The trial balance at May 31 is as follows. Cuono Consulting Trial Balance May 31, 2020 Account Number 101 112 126 130 149 201 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Share Capital-Ordinary Service Revenue Salaries and Wages Expense Rent Expense Debit Credit € 4,400 5,900 2,300 4,800 12,000 €4,300 1,900 19,300 8,400 3,500 1,000 €33,900 €33,900 209 311 400 726 729 In addition to those accounts listed on the trial balance, the chart of accounts for Cuono Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. €1,000 of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2020, €200. 3. The insurance policy is for 2 years. 4. €300 of the balance in the unearned service revenue account remains unearned at the end of the month. 5. May 31 is a Wednesday, and employees are paid on Fridays. Cuono Consulting has two employees, who are paid €1,000 each for a 5-day work week. 6. The office furniture has a 5-year life with no residual value. It is being depreciated at €200 per month for 60 months. 7. Invoices representing €1,600 of services performed during the month have not been recorded as of May 31.

Answer 1

Cuono Consulting Journal entries Date Account 31-May Supplies Expense Supplies Credit Calculation Post Ref Debit $ 1,000 $ 1,000 $ 200 31-May Utilities Expense Accounts Payable $ 200 $ 200 =4,800/24 31-May Insurance Expense Prepaid Insurance $ 200 $ 1,600 =1,900-300 31-May Unearned Service Revenue Service Revenue $ 1,600 $ 1,200 31-May Salary and Wages Expense Salary and Wages Payable =1,000/5*3 days*2 emps 1,200 Mon to Wed 3 days due $ $ 200 31-May Depreciation Expense Accumulated Depreciation-Equipment J4 $ 200 $ 1,600 31-May Accounts Receivable Service Revenue $ 1,600

Cuono Consulting T Accounts Date Item Credit Post Ref Debit Cash 31-May Balance Supplies 31-May Balance 31-May Adjusting 4 $ 1,000 Equipment 31-May Balance Accounts Payable 31-May Balance 31-May Adjusting 14 $ 200 Salary and Wages Payable 31-May Balance ✓ 31-May Adjusting 4 $ 1,200 Service Revenue 31-May Balance ✓ 31-May Adjusting 4 $ 1,600 31-May Adjusting 14 $ 1,600 Depreciation Expense 31-May Balance v 31-May Adjusting 34 $ 200 Salary and Wages Expense 31-May Balance ✓ 31-May Adjusting J4 $ 1,200 Utilities Expense 31-May Balance 31-May Adjusting 4 $ 200 Balance Date Item Post Ref Debit Credit Balance Accounts Receivable $ 4,400 31-May Balance ✓ $ 5,900 $ 4,400 31-May Adjusting 4 $ 1,600 $ 7,500 Prepaid Insurance $ 2,300 31-May Balance v $ 4,800 $ 1,300 31-May Adjusting J4 $ 200 $ 4,600 Accumulated Depreciation-Equipment $ 12,000 31-May Balance ✓ $ - $ 12,000 31-May Adjusting 4 200 $ 200 Unearned Service Revenue $ 4,300 31-May Balance $ 1,900 $ 4,500 31-May Adjusting 4 $ 1,600 $ 300 Share Capital-Ordinary $ - 31-May Balance $ 19,300 $ 1,200 $ 19,300 Supplies Expense $ 8,400 31-May Balance $ - $ 10,000 31-May Adjusting 4 $1,000 $ 1,000 $ 11,600 Insurance Expense $ . 31-May Balance $ - $ 200 31-May Adjusting 14 $ 200 $ 200 Rent Expense $ 3,500 31-May Balance $ 1,000 $ 4,700 $ 1,000 $ 200

Adjusted TB Debit Credit 4,400 7,500 1,300 4,600 12,000 200 Cuono Consulting For the Month ended May 31, 2020 Account Names Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salary and Wages Payable Share Capital-Ordinary Service Revenue Supplies Expense Depreciation Expense Insurance Expense Salary and Wages Expense Rent Expense Utilities Expense Totals 4,500 300 1,200 19,300 11,600 1,000 200 200 4,700 1,000 200 37,100 37,100