Question

Problem 4-02A Len Kenneth started his own consulting firm, Kenneth Consulting, on June 1, 2022. The trial balance at June 30 is as follows. KENNETH CONSULTING Trial Balance June 30, 2022 Credit Debit $ 6,850 7,000 1,982 3,780 15,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 4,260 5,200 21,982 8,300 4,000 1,130 $39,742 $39,742 In addition to those accounts listed on the trial balance, the chart of accounts for Kenneth also contains the following accounts: Accumulated Depreciation Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. Supplies on hand at June 30 total $720. 2. A utility bill for $260 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 $4,320 of unearned service revenue by the end of the month. 5. Salaries of $1,490 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 $3,950 of services performed by Kenneth during the month have not been recorded as of June 30. Prepare the adjusting entries for the month of June. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Answer 1

Solution:

Requirement 1:

N0.	Account Titles and Explanation	Debit	Credit
1	Supplies Expenses	$    1,262
	Supplies		$    1,262
	(To record supplies expense)
2	Utility Expense	$        260
	Account Payable		$        260
	(To record utilities payable)
3	Insurance Expense(3780/12)	$        315
	Prepaid Insurance		$        315
	(To record insurance expense recorded)
4	Unearned Revenue	$    4,320
	Service Revenue		$    4,320
	(To record revenue earned)
5	Salaries and Wages Expense	$    1,490
	Salaries and Wages Payable		$    1,490
	(To record wages payable recorded)
6	Depreciation Expense	$        250
	Accumulated Depreciation- Equipment		$        250
	(To record depreciation expense)
7	Accounts Receivables	$    3,950
	Service Revenue		$    3,950
	(To record revenue earned)

Requirement 2:

Cash
Beg balance	$              6,850
End Balance	$              6,850
Accounts Receivables
Beg balance	$              7,000
7	$              3,950
End Balance	$            10,950
Supplies
Beg balance	$              1,982	1	$    1,262
End Balance	$                  720
Prepaid Insurance
Beg balance	$              3,780	3	$        315
End Balance	$              3,465
Equipment
Beg balance	$            15,000
End Balance	$            15,000
Accumulated-Equipment
		6	$        250
		6	$        250
Accounts Payable
		Beg balance	$    4,260
		2	$        260
		End Balance	$    4,520
Salaries and Wages Payable
		5	$    1,490
		End Balance	$    1,490
Unearned Service Revenue
4	$              4,320	Beg balance	$    5,200
		End Balance	$        880
Common Stock
		Beg balance	$ 21,982
		End Balance	$ 21,982
Service Revenue
		Beg balance	$    8,300
		4	$    4,320
		7	$    3,950
		End Balance	$ 16,570
Salaries and Wages Expense
Beg balance	$              4,000
5	$              1,490
End Balance	$              5,490
Rent expense
Beg balance	$              1,130
End Balance	$              1,130
Depreciation Expense
6	$                  250
End Balance	$                  250
Insurance Expense
3	$                  315
End Balance	$                  315
Utilities Expense
2	$                  260
End Balance	$                  260
Supplies Expense
1	$              1,262
End Balance	$              1,262

Requirement 3:

KENNETH CONSULTING
Adjusted Trial Balance
AT JUNE 30,2022
	Debit	Credit
Cash	$        6,850	$                 -
Accounts Receivable	$     10,950	$                 -
Supplies	$           720	$                 -
Prepaid Insurance	$        3,465	$                 -
Equipment	15000	$                 -
Accumulated Depreciation	$               -	$              250
Accounts Payable	$               -	$          4,520
Salaries and Wages Payable	$               -	$          1,490
Unearned Service Revenue	$               -	$              880
Common stock	$               -	$        21,982
Service revenue	$               -	$        16,570
Salaries and Wages Expense	$        5,490	$                 -
Rent Expense	$        1,130	$                 -
Depreciation Expense	$           250	$                 -
Insurance Expense	$           315	$                 -
Utility Expense	$           260	$                 -
Supplies Expense	$        1,262	$                 -
Total	$     45,692	$        45,692