Question

CALCULATOR FULL SCREEN PRINTER VERSION Problem 4-02A (Part Level Submission) Len George started his own consulting firm, George Consulting, on June 1, 2022. The trial balance at June 30 is as follows. GEORGE CONSULTING Trial Balance June 30, 2022 Credit Debit $ 6,850 7,000 1,997 3,720 15,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Uneared Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 4,245 5,200 21,997 8,300 4,000 1,175 $39,742 $39,742 In addition to those accounts listed on the trial balance, the chart of accounts for George also contains the following accounts: Accumulated Depreciation- Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. Supplies on hand at June 30 total $720. 2. A utility bill for $200 has not been recorded and will not be paid until next month. Privacy Policy 1 R 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Answer 1

Solution:-

Following are the adjusted entries for the month of June for George Consulting

Transactions	Accounts & Explanations	Debit in $	Credit in $
30-Jun	Supplies expense [1977 – 720]	1,257
	Supplies		1,257
	(To record supplies consumed)
30-Jun	Utilities expense	200
	Accounts Payable		200
	(To record accrued expenses)
30-Jun	Insurance expense [3,720 x (1 /12 )]	310
	Prepaid Insurance		310
	( To record insurance expense for one month)
30-Jun	Unearned Service revenue	4,240
	Service revenue		4,240
	(To record unearned service revenue now earned)
30-Jun	Salaries & Wages expense	1,290
	Salaries & Wages Payable		1,290
	(To record accured salaries & wages )
30-Jun	Depreciation expense	250
	Accumulated Depreciation - Equipment		250
	(To record depreciation expense)
30-Jun	Accounts receivables	4,330
	Service revenue		4,330
	(To record Services performed, billed and recorded)