Question

Windsor, Inc. Trial Balance May 31, 2020 Account Number Credit 101 Cash 112 126 Debit $4,500 6,200 2,000 2,400 10,800 130 149 201 Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense 209 $ 4,500 2,000 16,200 7,500 311 400 726 729 3,300 1,000 $30,200 $30,200 In addition to those accounts listed on the trial balance, the chart of accounts for Windsor, Inc. 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. $1,000 of supplies have been used during the month. Utilities expense incurred but not paid on May 31, 2020, $300. The insurance policy is for 2 years. $400 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. Nardelli Consulting has two employees, who are paid $1,100 each for a 5-day work week. The equipment has a 5-year life with no salvage value. It is being depreciated at $180 per month for 60 months. Invoices representing $1,800 of services performed during the month have not been recorded as of May 31. 5. 6. 7.

Answer 1

No.	Date	Accounts	Debit	Credit
1	MAY 31	Supplies Expense Supplies	1,000	1,000
2	MAY 31	Utilities Expense Utilities Expense Payable	300	300
3	MAY 31	Insurance Prepaid Insurance	200	200
4	MAY 31	Unearned Service Revenue Service Revenue	1,600	1,600
5	MAY 31	Salaries and Wages Expense Salaries and Wages Payable	1,320	1,320
6	MAY 31	Depreciation Expense Accumulated Depreciation	180	180
7	MAY 31	Accounts Receivable Service Revenue	1,800	1,800

Notes:

2. Utilities Expense is outstanding on last day of the month hence shall be credited to utilities expense payable, but can also be credited to accounts payable in case utilities expense payable account is not available.

3. Insurance policy is for 2 years therefore for a month amount adjusted be = $2,400/12 = $200

4. Balance left in unearned service account = $400, Therefore, unearned service account to be adjusted = $2,000 - $400 = $1,600

5. Since the payment is made on Friday and May 31 is Wednesday , therefore 3 day payment is due but not paid, therefore outstanding balance = $1,100 / 5 per day * 3 days * 2 workers = $1,320