Question

X Prepare adjusting entries, post to ledger accounts, and prepare an adjusted trial balance, (LO 2, 3, 4) OBLEMS: 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 3,600 149 Equipment 11,400 201 Accounts Payable $ 2,200 209 Unearned Service Revenue 2,000 311 Common Stock 20,000 400 Service Revenue 7,500 726 Salaries and Wages Expense 3,400 900 729 Rent Expense $31,700 $31,700

Answer 1

Solution:

i) journal entries:

900 900 250 150 1,600 No. Date Account Titles and Explanation Debit Credit 1 May 31 Supplies expense Supplies (to record supplies used) 2 May 31 Utilities expense 250 Accounts payable (to record utilities expenses) 3 May 31 Insurance expense 150 Prepaid insurance (3,600 / 24 months) (to record insurance for the month of May) 4 May 31 Unearned service revenue 1,600 Service revenue (2,000-400) (to record service revenue earned during the month) 5 May 31 Salaries and wages expense 1,080 Salaries and wages payable (to record salaries and wages expense for 3 days) 6 May 31 Depreciation expense 190 Accumulated depreciation - Equipment (to record depreciation expense) 7 May 31 Accounts receivable 1,700 Service revenue (to record service revenue earned during the period), Working Notes: Calculation of salaries and wages due Salaries and wages for 5 days 900 Salaries and wages for 3 days (.e. Monday - Wednesday) 900 x 3/5 540 Total Salaries and wages due for 2 employees (540 X 2) 1,080 1,080 190 1,700

ii) Adjusting entries in ledger account:

Cash Date Explanation May 31 Balance Ref Debit Credit No.101 Balance 4,500 Debit Credit Accounts receivable Date Explanation May 31 Balance May 31 Adjusting Ref ✓ No.112 Balance 6,000 7,700 14 1,700 Ref Debit Credit Supplies Date Explanation May 31 Balance May 31 Adjusting No.126 Balance 1,900 1,000 ✓ 14 900 Ref Debit Credit Prepaid Insurance Date Explanation May 31 Balance May 31 Adjusting No.130 Balance 3,600 150 3,450 J4 Equipment Date Explanation May 31 Balance Debit Credit Ref ✓ No.149 Balance 11,400 Accumulated Depreciation - Equipment Date Explanation Ref Debit May 31 Adjusting J4 Credit No.150 Balance 190 190 Debit Credit Accounts payable Date Explanation May 31 Balance May 31 Adjusting Ref ✓ No.201 Balance 2,200 250 2,450 14

Ref Debit Credit Unearned Service revenue Date Explanation May 31 Balance May 31 Adjusting No.209 Balance 2,000 400 J4 1,600 Salaries and wages payable Date Explanation Ref May 31 Adjusting J4 Debit Credit No.212 Balance 1,080 1,080 Common stock Date Explanation May 31 Balance Debit Credit Ref ✓ No.311 Balance 20,000 Debit Service revenue Date Explanation May 31 Balance May 31 Adjusting May 31 Adjusting Ref ✓ No.400 Credit Balance 7,500 1,600 9,100 1,700 10,800 14 J4 Supplies expense Date Explanation May 31 Adjusting Debit Ref 14 Credit 900 No.631 Balance 900

Depreciation expense Date Explanation May 31 Adjusting Debit Ref J4 Credit 190 No.717 Balance 190 Insurance expense Date Explanation May 31 Adjusting Debit Ref 14 Credit 150 No.722 Balance 150 Debit Credit Salaries and wages expense Date Explanation Ref May 31 Balance ✓ May 31 Adjusting 14 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 250 No.736 Balance 250 J4

iii) adjusted trail balance at may 31, 2019(by mistake 2020 taken in excel sheet)

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

Note: please thums up if like the solution. Thank you??