Question

Problem 3-01A a-c (Video) Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2020. The trial balance at May 31 is as follows. Nardelli Consulting Trial Balance May 31, 2020 Credit Account Number 101 112 126 Debit $ 4,500 6,000 1,900 3,600 11,400 201 209 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 2,200 2,000 20,000 7,500 311 400 3,400 900 $31,700 $31,700

Answer 1

Debit Credit 900 900 250 L 250 150 150 1,600 1,600 No. Date Account Titles and Explanation 1 May 31 Supplies expense Supplies (to record supplies used) May 31 Utilities expense Accounts payable T (to record utilities expenses) May 31 Insurance expense Prepaid insurance (3,600 / 24 months) (to record insurance for the month of May) May 31 Unearned service revenue Service revenue (2,000 - 400) (to record service revenue earned during the month) 5 May 31 Salaries and wages expense Salaries and wages payable (to record salaries and wages expense for 3 days) 6 May 31 Depreciation expense Accumulated depreciation - Equipment (to record depreciation expense) May 31 Accounts receivable Service revenue (to record service revenue earned during the period) Working Notes: 1) Calculation of salaries and wages due Salaries and wages for 5 days Salaries and wages for 3 days (i.e. Monday - Wednesday) 1,080 1,080 1 190 190 1,700 1,700 900 900 x 3/5 540 1,080 Total Salaries and wages due for 2 employees (540 x 2)

Cash Date Explanation May 31 Balance Ref Debit Credit No.101 Balance 4,500 Ref Debit Credit Accounts receivable Date Explanation May 31 Balance May 31 Adjusting No.112 Balance 6,000 7,700 1,700 Ref Debit Credit Supplies Date Explanation May 31 Balance May 31 Adjusting No.126 Balance 1,900 1,000 4 900 Ref Debit Credit Prepaid Insurance Date Explanation May 31 Balance May 31 Adjusting No.130 Balance 3,600 3,450 4 150 Equipment Date Explanation May 31 Balance Ref Debit Credit No.149 Balance 11,400 Accumulated Depreciation - Equipment Date Explanation Ref Debit May 31 Adjusting Credit No.150 Balance 190 J4 190

Ref Debit Credit Accounts payable Date Explanation May 31 Balance May 31 Adjusting No.201 Balance 2,200 2,450 14 250 Ref Debit Credit Unearned Service revenue Date Explanation May 31 Balance May 31 Adjusting No.209 Balance 2,000 400 1,600 Salaries and wages payable Date Explanation Ref May 31 Adjusting 14 Debit Credit No.212 Balance 1,080 1,080 Common stock Date Explanation May 31 Balance Ref Debit Credit No.311 Balance 20,000 Ref Debit Credit Service revenue Date Explanation May 31 Balance May 31 Adjusting May 31 Adjusting No.400 Balance 7,500 9,100 10,800 1,600 1,700 Supplies expense Date Explanation May 31 Adjusting Ref Debit Credit No.631 Balance 900 4 900

Depreciation expense Date Explanation May 31 Adjusting Debit Credit Ref 14 No.717 Balance 190 190 Insurance expense Date Explanation May 31 Adjusting Debit Credit Ref J4 No.722 Balance 150 150 Debit Credit Salaries and wages expense Date Explanation Ref May 31 Balance May 31 Adjusting J4 No.726 Balance 3,400 4,480 1,080 Rent Expense Date Explanation May 31 Balance Ref Debit Credit No.729 Balance 900 Utilities expense Date Explanation May 31 Adjusting Ref Debit Credit No.736 Balance 250 J4 250

Credit 4,500 7,700 1,000 3,450 11,400 Nardelli Consulting Adjusted Trial Balance May 31, 2020 Debit Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation- Equipment Accounts payable Unearned service revenue Salaries and wages payable Common stock Service revenue Supplies expense Depreciation expense Insurance expense Salaries and wages expense Rent expense Utilities expense Totals 190 2,450 400 1,080 20,000 10,800 900 190 150 4,480 900 250 34,920 34,920