Question

Question 7) Astro Consulting had the following trial balance on June 30, 2020: Debit Credit $25,850 7.000 2.000 2,640 15.000 S 1.000 4,540 5.200 0 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accum. Depreciation Equip Accounts Payable Uneared Service Revenue Utilities Payable Salaries Payable Common Stock Retained Earnings Service Revenue Salaries Expense Depreciation Exp.-Equip. Insurance Expense Utilities Expense Supplies Expense Rent Expense 21.750 19.000 8.000 4,000 1.000 2.000 $59.490 $59.490 The following data was available on June 30: 1) Supplies on hand total $980. 2) A utility bill for $180 has not been recorded and will not be paid until next month. 3) The insurance policy is for a year. 4) Sixty-five percent of the unearned service revenue has been earned at the end of the month. 5) Salaries of $1,250 need to be accrued at June 30. 6) The equipment has a 5-year life with no salvage value. 7) Invoices representing $3,000 of services performed during the month have not been recorded as of June 30. Instructions: Journalize the adjusting entries at June 30, 2020 in COLOR. Assume no adjustments have been made since June 1", 2020.

Answer 1

Adjusting Entries:

	Date	Account title and Explanation	Debit	Credit
1	June 30	Supplies expense [2,000-980]	$1,020
		Supplies		$1,020
		[To record supplies expense]
2	June 30	Utilities expense	$180
		Utilities payable		$180
		[To record accrued utilities expense]
3	June 30	Insurance expense [2,640 x 1/12]	$220
		Prepaid insurance		$220
		[To record insurance expense]
4	June 30	Unearned Service Revenue [5,200 x 60%]	$3,120
		Service revenue		$3,120
		[To record revenue from unearned]
5	June 30	Salaries expense	$1,250
		Salaries payable		$1,250
		[To record accrued salaries expense]
6	June 30	Depreciation expense [(15,000/5) x 1/12]	$250
		Accumulated depreciation-equipment		$250
		[To record depreciation expense on equipment]
7	June 30	Accounts receivable	$3,000
		Service revenue		$3,000
		[To record accrued service revenue]