Question

Acct 205 Date: This homework problem is an INDEPENDENT assignment. Please turn in a scanned copy of the original handwritten work on Moodle. Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2014 The trial balance at June 30 is as shown below. QUINN CONSULTING Trial Balance June 30, 2014 Debit Credit Cash $ 7,500 Accounts Receivable 3,000 Prepaid Insurance 4,800 Supplies 2,500 Equipment 12,000 Accounts Payable $ 3,500 Unearned Service Revenue 4,000 Common Stock 19,100 Service Revenue 7,500 Salaries and Wages Expense 4,000 Rent Expense 1,500 $34.100 $34.100 In addition to those accounts listed on the trial balance, the chart of accounts for Quinn Consulting also contains the following accounts: Accumulated Depreciation-Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. $1,900 of supplies were used as of June 30. 2. Utility costs incurred but not paid are $450. 3. The insurance policy is for 2 years. 4. $2,900 of the balance in the Unearned Service Revenue account remains has been earned at the end of the month. 5. The equipment has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months. Instructions (a) Prepare the adjusting entries on June 30. Assume no other adjusting entries have been made

Answer 1

Solution:

Event	General Journal	DEBIT	CREDIT
1	Supplies Expenses	$         1,900
	Supplies		$             1,900
	(To record supplies expense)
2	Utilities Expense	$            450
	Accounts Payable		$                450
	(To record utilities expenses)
3	Insurance Expense [4800/24 Months *2 Months]	$            400
	Prepaid Insurance		$                400
	(To record insurance expense recorded)
4	Unearned Service Revenue	$         2,900
	Service Revenue		$             2,900
	(To record revenue earned)
5	Depreciation Expense [200*2]	$            400
	Accumulated Depreciation-Equipment		$                400
	(To record depreciation expense)