Question

Monty started her own consulting firm, Monty Corp, on May 1, 2022. The unadjusted trial balance at May 31 is as follows. 

In addition to those accounts listed on the trial balance, the chart of accounts for Monty Corp. 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. $1,170 of supplies have been used during the month. 

2. Utilities expense incurred but not paid or recorded on May 31, 2022, $325. 

3. An insurance policy for 2 years was purchased on May 1. 

4. $520 of the balance in the unearned service revenue account remains unearned at the end of the month. 

5. May 31 is a Wednesday, and employees are paid on Fridays. Nardelli Consulting has two employees, who are paid $740 each for a 5-day work week. 

6. The equipment has a 5-year life with no salvage value. It is being depreciated at $252 per month for 60 months. 

7. Invoices representing $2,210 of services performed during the month have not been recorded as of May 31. 

Answer 1

Jounrala Entry- Monty Corp.
S. No.	Date	Account titles & Explanations	Debit	Credit
1	31-May	Supplies Expense	1170
		Supplies .		1170
2	31-May	Utilities Expense	325
		Accounts Payable		325
3	31-May	Insurance Expense	390
		Prepaid Insurance (4680/12)		390
4	31-May	Unearned Service Revenue	2,080
		Service Revenue (2600-520)		2,080
5	31-May	Salaries and Wages Expense	888
		Salary and Wages Payable (740*2)*3/5		888
6	31-May	Depreciation Expense	252
		Accumulated Depreciation- Equipment		252
7	31-May	Accounts Receivable	2,210
		Service Revenue		2,210