Question

Problem 3-1A Pina Colada started her own consulting firm, Pina Colada Corp., on May 1, 2019. The trial balance at May 31 is as follows. Pina Colada Corp. Trial Balance May 31, 2019 Credit Account Number 101 112 126 130 Debit $ 4,600 5,900 2,200 2,400 10,200 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 4,600 2,000 15,800 7,500 400 726 729 3,400 1,200 $29,900 $29.900 In addition to those accounts listed on the trial balance, the chart of accounts for Pina Colada Corp. 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.

Answer 1

Preparing Adjusting Entries:-

Pina Colada Corp.

Adjusting Entries

May 31,2019

Date	Accounts Title	Debit	Credit	Explanation
May 31	Supplies Expense	$1,100
	Supplies		$1,100
May 31	Utilities Expense	$200
	Accounts Payable		$200
May 31	Insurance Expense	$100		=($2,400×1/24)
	Prepaid Insurance		$100	=$100
May 31	Unearned Service Revenue	$1,600		=($2,000-$400)
	Service Revenue		$1,600	=$1,600
May 31	Salaries and Wages Expense	$1,200		=($1,000×2×3/5)
	Salaries and Wages Payable		$1,200	=$1,200
May 31	Depreciation Expense	$170		=($10,200/5×1/12)
	Accumulated Depreciation, Equipment		$170	=$170
May 31	Accounts Receivable	$1,700
	Service Revenue		$1,700

Posting the Adjusting Entries:-

Cash No.101

Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	J4	$4,600		$4,600

Accounts Receivable No.112

May 31	Balance		$5,900		$5,900
May 31	Adjusting Entry	J4	$1,700		$7,600

Supplies No. 126

May 31	Balance		$2,200		$2,200
May 31	Adjusting Entry	J4		$1,100	$1,100

Prepaid Insurance No.130

May 31	Balance		$2,400		$2,400
May 31	Adjusting Entry	J4		$100	$2,300

Equipment No. 149

May 31	Balance		$10,200		$10,200

Accumulated Depreciation, Equipment No.150

May 31	Adjusting Entry	J4		$170	$170

Accounts Payable No. 201

May 31	Balance			$4,600	$4,600
May 31	Adjusting Entry	J4		$200	$4,800

Unearned Service Revenue No. 209

May 31	Balance			$2,000	$2,000
May 31	Adjusting Entry	J4	$1,600		$400

Salaries and Wages Payable No.212

May 31	Adjusting Entry	J4		$1,200	$1,200

Common Stock. No. 311

May 31	Balance			$15,800	$15,800

Service Revenue No. 400

May 31	Balance			$7,500	$7,500
May 31	Adjusting Entry	J4		$1,600	$9,100
May 31	Adjusting Entry	J4		$1,700	$10,800

Salaries and Wages Expense No.726

May 31	Balance		$3,400		$3,400
May 31	Adjusting Entry	J4	1,200		$4,600

Rent Expense No. 729

May 31	Balance		$1,200		$1,200

Supplies Expense No. 631

May 31	Adjusting Entry	J4	$1,100		$1,100

Depreciation Expense No. 717

May 31	Adjusting Entry	J4		$170	$170

Insurance Expense No. 722

May 31	Adjusting Entry	J4	$100		$100

Utilities Expense No.732

May 31	Adjusting Entry	J4	$200		$200

Preparing Adjusted Trial Balance:-

Pina Colada Corp.

Adjusted Trial Balance

May 31,2019

Accounts	Debit	Credit
Cash	$4,600
Accounts Receivable	7,600
Supplies	1,100
Prepaid Insurance	2,300
Equipment	10,200
Accumulated Depreciation, Equipment		$170
Accounts Payable		4,800
Unearned Service Revenue		400
Salaries and Wages Payable		1,200
Common Stock		15,800
Service Revenue		10,800
Salaries and Wages Expense	4,600
Rent Expense	1,200
Supplies Expense	1,100
Depreciation Expense	170
Insurance Expense	100
Utilities Expense	200
Totals	$33,170	$33,170