Question

Sharon Lee started her own consulting firm, Lee Consulting, on May 1, 2020. The trial balance at May 31 is as follows. LEE CONSULTING Trial Balance May 31, 2020 Credit Debit $4,600 5.900 2.000 4.800 10.200 Account Number 101 112 126 130 149 201 209 301 400 726 729 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Rent Expense $4,200 1.900 18,200 8,100 3,500 1.400 $32,400 $32,400 In addition to those accounts listed on the trial balance, the chart of accounts for Lee 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. 2. 3. 4. 5. $900 of supplies have been used during the month. Utilities expense incurred but not paid on May 31, 2020, $200. The insurance policy is for 2 years. $300 of the balance in the unearned service revenue account remains unearned at the end of the month. May 31 is a Wednesday, and employees are paid on Fridays. Lee Consulting has two employees, who are paid $900 each for a 5-day work week The office furniture has a 5-year life with no salvage value. It is being depreciated at $170 per month for 60 months. Invoices representing $1,700 of services performed during the month have not been recorded as of May 31. 6. 7.

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Post entries in the order of journal entries presented in the previous part.)

Answer 1

Owner's Capital Cash 4,600 Beg. Bal. $ Beg. Bal. $ 18,200 End. Bal. $ 4,600 End. Bal. $ 18,200 Beg. Bal. 7 $ $ $ Accounts Receivable 5,900 1,700 7,600 Service Revenue Beg. Bal. 4 7 End. Bal. $ $ $ $ 8,100 1,600 1,700 11,400 End. Bal. Supplies 2,000 Beg. Bal. $ 1 $ 900 Supplies Expense 900 1 $ End. Bal. $ 1,100 End. Bal. $ 900 Prepaid Insurance 4,800 3 Beg. Bal. $ $ 200 Depreciation Expense $ 170 5 End. Bal. $ 4,600 End. Bal. $ 170 Equipment 10,200 Beg. Bal. $ Beg. Bal. 5 Salaries and Wages Expense $ 3,500 $ 1,080 End. Bal. $ 10,200 End. Bal. $ $ 4,580 Accumulated Depreciation-Equipment Beg. Bal. $ 6 $ 170 Rent Expense 1,400 Beg. Bal. $ $ End. Bal. $ 170 End. Bal. $ 1,400 Accounts Payable Beg. Bal. 2 $ $ 4,200 200 Insurance Expense 200 3 $ End. Bal. $ 4,400 End. Bal. $ 200 Unearned Service Revenue $ 1,600 Beg. Bal. Utilities Expense 200 4 $ 1,900 2 $ End. Bal. $ 300 End. Bal. $ 200 Salaries and Wages Payable Beg. Bal. 5 End. Bal. $ $ $ 1,080 1,080