Question

Monty started her own consulting firm, Monty Corp., on May 1, 2022. The unadjusted trial balance at May 31 is as follows. Monty Corp. Trial Balance May 31, 2022 Debit Credit Account Number 101 $ 5,850 7,800 112 126 2.470 130 4,680 15,120 149 201 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense $ 2,860 209 2,600 26,300 311 9,750 400 726 729 4,420 1,170 $41,510 $41,510 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.

Fix the numbers in the red boxes.

Answer 1

Monty Corp Adjusting entries Date Account 31-May Supplies expense Supplies Credit Calculation Debit $ 1,170 $ 1,170 $ 325 31-May Utilities expense Accounts Payable $ 325 $ 195 4680/24 months 31-May Insurance expense Prepaid Insurance $ $ 195 $ $ 2,080 2600-520 31-May Unearned Service Revenue Service Revenue $ 2,080 $ $ 888 31-May Salaries and Wages expense Salaries and Wages Payable =740/5*3 days *2 employees 888 Monday to Wednesday 3 days $ $ 252 31-May Depreciation expense Accumulated Depreciation - Equipment $ 252 $ 2,210 31-May Accounts Receivable Service Revenue $ 2,210

For ledger accounts below:

Opening balance should always be entered in Balance column and not Debit or Credit columns.

For rest of the 7 adjusting entries, post it to appropriate debit or credit column as follows

Monty Corp T Accounts Date Item Post Ref Debit Credit Balance Date Item Post Ref Debit Credit Balance Cash Accounts Receivable 31-May Balance ✓ $ 5,850 31-May Balance ✓ $ 7,800 $ 5,850 31-May Adjusting 14 $2,210 $ 10,010 Supplies Prepaid Insurance 31-May Balance $ 2,470 31-May Balance ✓ $ 4,680 31-May Adjusting 14 $1,170 $ 1,300 31-May Adjusting 14 $195 $ 4,485 Equipment Accumulated Depreciation - Equipment 31-May Balance $ 15,120 31-May Balance ✓ $ $ 15,120 31-May Adjusting 14 $ 252 $ 252 Accounts Payable Unearned Service Revenue 31-May Balance ✓ $ 2,860 31-May Balance $ 2,600 31-May Adjusting 14 $ 325 $ 3,185 31-May Adjusting 14 $2,080 $ 520 Salaries and Wages Payable Common Stock 31-May Balance ✓ $ 31-May Balance ✓ $ 26,300 31-May Adjusting 14 $ 888 $ 888 $ 26,300 Service Revenue Supplies expense 31-May Balance $ 9,750 31-May Balance ✓ $ 31-May Adjusting J4 $2,080 $11,830 31-May Adjusting 14 $1,170 $ 1,170 31-May Adjusting J4 $2,210 $14,040 Depreciation expense Insurance expense 31-May Balance ✓ $ 31-May Balance ✓ $ 31-May Adjusting 14 $ 252 $ 252 31-May Adjusting J4 $ 195 $ 195 Salaries and Wages expense Rent expense 31-May Balance ✓ $ 4,420 31-May Balance $ 1,170 31-May Adjusting 14 $ 888 $ 5,308 $ 1,170 Utilities expense 31-May Balance $ 31-May Adjusting 14 $ 325 $ 325 V