Question

Joseph started his own consulting firm, Joseph Consulting, on June 1, 2022. The trial balance at June 30 is as follows. JOSEPH CONSULTING Trial Balance June 30, 2022 Debit Credit Cash $6,850 Accounts Receivable 7,000 Supplies 1,972 Prepaid Insurance 3,300 Equipment 15,000 Accounts Payable $4,250 Unearned Service Revenue 5,200 Common Stock 21,972 Service Revenue 8,300 Salaries and Wages Expense 4,000 Rent Expense 1,600 $39,722 $39,722 In addition to those accounts listed on the trial balance, the chart of accounts for Joseph also contains the following accounts: Accumulated Depreciation-Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: Supplies on hand at June 30 total $720. A utility bill for $220 has not been recorded and will not be paid until next month. The insurance policy is for a year. Services were performed for $4,230 of unearned service revenue by the end of the month. Salaries of $1,310 are accrued at June 30. The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months. Invoices representing $4,280 of services performed by Joseph during the month have not been recorded as of June 30. 1. 2. 3. 4. 5. 6. 7

Answer 1

Solution:-

a)

Date	Account title and Explanation	Debit	Credit
1	Supplies expense ($1,972 - $720)	$1,252
	Supplies		$1,252
	(Supplies used)
2	Utilities expense	$220
	Accounts payable		$220
	(Utility bill recorded)
3	Insurance Expense ($3,300 /12 months)	$275
	Prepaid insurance		$275
	(insurence expense for june month)
4	Unearned service revenue	$4,230
	Service revenue		$4,230
	(Services performed)
5	Salaries and wages expense	$1,310
	Salaries and wages payable		$1,310
	(Salaries accured)
6	Depreciation expense	$250
	Accumulated depreciation-equipment		$250
	(Depreciation recorded for june)
7	Accounts receivable	$4,280
	Service revenue		$4,280
	(Services performed)

b)

Cash
6/30 Bal.	$6,850

Accounts receivable
6/30 Bal.	$7,000
6/30	$4,280
6/30 Bal.	$11,280

Supplies
6/30 Bal.	$1,972	6/30	$1,252
6/30 Bal.	$720

Prepaid insurance
6/30. Bal.	$3,300	6/30	$275
6/30 Bal.	$3,025

Equipment
6/30 Bal.	$15,000

Accumulated depreciation
		6/30 30	$250
		6/30 Bal.	$250

Accounts payable
		6/30 Bal.	$4,250
		6/30	$220
		6/30. Bal.	$4,470

Salaries and Wages payable
		6/ 30	$1,310
		6/30. Bal.	$1,310

Unearned Service revenue
6/30	$4,230	6/30 Bal.	$5,200
		6/30. Bal.	$970

Common stock
		6/30. Bal.	$21,972

Service revenue
		6/30 Bal.	$8,300
		6/30	$4,230
		6/30	$4,280
		6/30 Bal.	$16,810

Salaries and wages expense
6/30 Bal.	$4,000
6/ 30	$1,310
6/30. Bal.	$5,310

Rent expense
6/30 Bal.	$1,600

Depreciation Expens
6/30	$250
6/30 Bal.	$250

Insurance Expense
6/30	$275
6/30Bal.	$275

Utilities expense
6/30	$220
6/30 Bal.	$220

Supplies expense
6/ 30	$1,252
6/30 Bal	$1,252

C )

Adjusted Trial Balance
For the month ended June 30,2022
Account title	Debit	Credit
Cash	$6,850
Accounts receivable	$11,280
Supplies	$720
Prepaid insurance	$3,025
Equipment	$15,000
Accumulated depreciation		$250
Accounts payable		$4,470
Salaries and Wages payable		$1,310
Unearned Service revenue		$970
Common stock		$21,972
Service revenue		$16,810
Salaries and wages expense	$5,310
Rent expense	$1,600
Depreciation Expense	$250
Insurance Expense	$275
Utilities expense	$220
Supplies expense	$1,252
Totals	$45,782	$45,782