Question

Х Prepare adjusting entries, post to ledger accounts, and prepare an adjusted trial balance (LO 2,3,4) PROBLEMS: SET A P3-1A Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2019. The trial balance at May 31 is as follows. NARDELLI CONSULTING Trial Balance May 31, 2019 Account Number Debit Credit 101 Cash $ 4,500 112 Accounts Receivable 6,000 126 Supplies 1,900 130 Prepaid Insurance 3,600 Equipment 11,400 201 Accounts Payable $ 2,200 209 Unearned Service Revenue 2,000 20,000 311 Common Stock 7,500 400 Service Revenue 726 Salaries and Wages Expense 3,400 900 729 Rent Expense $31,700 $31,700 149

Answer 1

IN THE BOOKS OF NARDELLI CONSULTING
Date	Journal Entry	Dr. ($)	Cr. ($)	Transcation type
May 1 2019	Supplies Expense A/c Dr.	900		Supplies consumed
		To	Supplies A/c		900
May 1 2019	Utilities Expense A/c Dr.	250		Expenses due at the end
		To	Utilities Expense Payable A/c		250
May 1 2019	Insurance A/c Dr.	1,800		Expense charged for current year
		To	Prepaid Insurance A/c		1,800
May 1 2019	Unearned service revenue A/c Dr.	1,600		Revenue for current year recognised
		To	Service Revenue A/c		1,600
May 1 2019	Salaries and Wage Expense A/c Dr.	1,080		Expenses due at the end
		To	Salaries and Wage Expense Payable A/c		1,080	received
May 1 2019	Depreciation A/c Dr.	2,280		Depreciation provided
		To	Equipment A/c		2,280	for current year
May 1 2019	Service Revenue Receivable A/c	1,700		Revenue for current year recognised
		To	Service Revenue A/c		1,700
Note 1	Unearned service revenue outstanding 2,000 out of which 1,600 is recognised in current year and 400 is still
	unrecognised and will be carried over in balance sheet.
Note 2	Insurance is for 2 years.
	So for current year it will be - 3,600/2 = 1,800
Note 3	Salaries and Wage Expense outstanding = 900*2*3/5 =1,080
Note 4	Depreciation = 190*12 =2,280 for current year

NARDELLI CONSULTING
Adjusted Trial Balance
31-May-19
Account Number	Debits ($)	Credits ($)
101	Cash	4,500.00
112	Accounts Receivable	6,000.00
126	Supplies	1,000.00
130	Prepaid Insurance	1,800.00
149	Equipment	9,120.00
201	Accounts Payable		2,200.00
209	Unearned Service Revenue		400.00
311	Common Stock		20,000.00
400	Service Revenue		10,800.00
726	Salaries and Wage Expense	4,480.00
729	Rent Expense	900.00
	Utilities Expense	250.00
	Salaries and Wage Expense payable		1,080.00
	Depreciation	2,280.00
	Insurance	1,800.00
	Supplies Expense	900.00
	Utilities Expense Payable		250.00
	Service Revenue Receivable	1,700.00
Total	34,730.00	34,730.00

Cash A/C- 101 Ref. Credits ($) Explanation Begining Balance Closing Balance Debits ($) 4,500 4,500 4,500 4,500 Accounts Receivable A/c - 112 Ref. Credits ($) Explanation Begining Balance Debits ($) 6,000 Closing Balance 6,000 6,000 6,000 Supplies A/C- 126 Ref. Credits ($) Debits ($) 1,900 Explanation Begining Balance Supplies Expense A/C Closing Balance ✓ 900 1,000 1,900 1,900 Prepaid Insurance A/C- 130 Ref. Credits ($) Debits ($) 3,600 Explanation Begining Balance Insurance A/C Closing Balance 1,800 1,800 3,600 3,600 Equipment A/c - 149 Ref. Credits ($) Debits ($) 11,400 Explanation Begining Balance Depreciation A/C Closing Balance 2,280 9,120 11,400 11,400 Accounts Payable A/c-201 Ref. Debits ($) Explanation Begining Balance Credits ($) 2,200 Closing Balance 2,200 2,200 2,200 Unearned Service Revenue A/c-209 Ref. Debits ($) Credits ($) 2,000 Explanation Begining Balance Service Revenue A/C Closing Balance 1,600 400 2,000 2,000 Common Stock A/C-311 Ref. Debits ($) Explanation Begining Balance Credits ($) 20,000 Closing Balance 20,000 20,000 20,000 Service Revenue A/C-400 Ref. Debits ($) Explanation Begining Balance Unearned service revenue A/C Service Revenue Receivable A/C Closing Balance Credits ($) 7,500 1,600 1,700 V 10,800 10,800 10,800

Salaries and Wage Expense A/c - 726 Ref. Credits ($) Explanation Begining Balance Salaries and Wage Expense Payable A/C Closing Balance Debits ($) 3,400 1,080 4,480 4,480 4,480 Rent Expense A/c - 729 Ref. Debits ($) Credits ($) Explanation Begining Balance 900 Closing Balance 900 900 900 Utilities Expense A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Utilities Expense Payable Closing Balance 250 250 250 250 Depreciation A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Equipment A/C Closing Balance ✓ 2,280 2,280 2,280 2,280 Insurance A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Prepaid insurance A/C Closing Balance 1,800 1,800 1,800 1,800 Supplies Expense A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Supplies A/C Closing Balance 900 900 900 900 Salaries and Wage Expense Payable A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Salaries and Wage Expense A/C Closing Balance ✓ 1,080 1,080 1,080 1,080 Utilities Expense Payable A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Salaries and Wage Expense A/C Closing Balance 250 250 250 250 Service Revenue Receivable A/C Ref. Debits ($) Credits ($) Explanation Begining Balance Service Revenue A/C Closing Balance 1,700 1,700 1,700 1,700