Question

Problem 3-01A a-c

Nancy Jackson started her own consulting firm, Jackson Consulting, on May 1, 2020. The trial balance at May 31 is as follows.

JACKSON CONSULTING Trial Balance May 31, 2020 Debit Credit Account Number 101 112 126 $ 4,600 5,900 1,900 4,800 10,800 130 149 201 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Rent Expense 209 $ 4,700 2,000 18,400 7,700 301 400 726 729 3,300 1,500 $32,800 $32,800

In addition to those accounts listed on the trial balance, the chart of accounts for Jackson Consulting 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.		$900 of supplies have been used during the month.
2.		Utilities expense incurred but not paid on May 31, 2020, $200.
3.		The insurance policy is for 2 years.
4.		$300 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. Jackson Consulting has two employees, who are paid $1,100 each for a 5-day work week.
6.		The office furniture has a 5-year life with no salvage value. It is being depreciated at $180 per month for 60 months.
7.		Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.

Prepare the adjusting entries for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Post entries in the order of journal entries presented in the previous part.)

Answer 1

XI 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H28 : А B E F G H J K L M 2 3 No. Credit с D Answer: 1 Date Account title and Explanation May 31 Supplies expense Supplies (To record supply used during the period.) Debit 900 4 1 900 5 6 Credit 7 2 May 31 200 8 9 9 10 Utilities expense Accounts payable, (Utilities payable, if provided) (To record accrued utilities expense.) 200 11 12 3 May 31 200 13 Insurance expense Prepaid insurance (To record expired insurance.) (2 years = 24 months) (4800/24) 200 Answer: 3 Jackson Consulting Adjusted trial balance May 31, 2020 Account title Debit Cash 4,600 Accounts receivable 7,600 Supplies 1,000 Prepaid Insurance 4,600 Equipment 10,800 Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Owner's capital Service Revenue Supplies Expense 900 Depreciation Expense 180 Insurance Expense 200 Salaries and Wages Expense 4,620 Rent expense 1,500 Utilities Expense 200 Totals 36,200 14 180 4,900 300 1,320 18,400 15 16 4 May 31 1,700 17 Unearned Service revenue Service Revenue (To record Service Revenue earned.) (2000-300) 1,700 11,100 18 19 20 5 May 31 1,320 21 1,320 22 23 Salaries and wages expense Salaries and wages payable (To record salaries and wages expense this paid in future.) (Mon to Wed = 3 days) (2*1100=2200) (2200*3/5) Depreciation expense Accumulated depreciation - Equipment (To record depreciation expense) 6 May 31 180 36,200 180 24 25 26 27 28 1,700 29 7 May 31 Accounts receivable Service Revenue Sheet11 Sheet12 Sheet13 Sheet14 1.700 Sheet19 Activate Windows Go to Settings to activate Windows. Sheet15 Sheet16 Sheet17 Sheet18 READY + 100% 1 Search the web and Windows O ENG US 04:59 15-09-20

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H27 : X х А B с D E F H 1 J K L M 27 28 7 May 31 1,700 29 Accounts receivable Service Revenue (To record Service Revenue performed but not recorded 1,700 30 31 32 33 34 Answer: 2 Accounts Name: Cash Date Account title and Explanation May 31 Balance Account No: Credit Debit 35 36 101 Balance 4,600 37 38 Account No: Credit 39 Debit Accounts Name: Accounts receivable Date Account title and Explanation May 31 Balance May 31 Adjusting 112 Balance Cash 5,900 7,600 40 41 1,700 42 43 Account No: Credit 44 Debit Accounts Name: Supplies Date Account title and Explanation May 31 Balance May 31 Adjusting 126 Balance 1,900 1,000 45 46 900 47 48 Account No: Credit Debit 49 50 Accounts Name: Prepaid Insurance Date Account title and Explanation May 31 Balance May 31 Adjusting 130 Balance 4,800 4,600 51 200 52 53 54 Accounts Name: Equipment Date Account title and Explanation Sheet12 Sheet13 Sheet14 Sheet15 Sheet16 149 Balance Account No: Credit Sheet19 Debit Sheet18 Activate Windows Go to Settings to activate Windows. Sheet11 Sheet17 READY + 100% i Search the web and Windows O ENG US 04:59 15-09-20

XI 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H78 fi A B C D E F G H J K L M 52 53 54 Accounts Name: Equipment Date Account title and Explanation May 31 Balance Account No: Credit Debit 149 Balance 10,800 55 56 57 58 Accounts Name: Accumulated depreciation - equipment Date Account title and Explanation May 31 Adjusting Debit Account No: Credit 180 150 Balance 180 59 60 61 Account No: Credit 62 Debit Accounts Name: Accounts Payable Date Account title and Explanation May 31 Balance May 31 Adjusting 201 Balance 4,700 4,900 63 64 200 65 66 67 Supplies expense 68 Account No: Credit Debit Accounts Name: Unearned Service Revenue Date Account title and Explanation May 31 Balance May 31 Adjusting 209 Balance 2,000 300 69 1,700 70 71 = 72 Accounts Name: Salaries and Wages Payable Date Account title and Explanation May 31 Adjusting Debit Account No: Credit 1,320 212 Balance 1,320 73 74 75 Account No: Credit 76 Accounts Name: Owner's capital Date Account title and Explanation May 31 Balance Debit 301 Balance 18,400 77 78 79 Accounts Name: Service Revenue Sheet12 Sheet13 Sheet14 Sheet15 Account No: Sheet19 400 : Activate Windows Go to Settings to activate Windows. Sheet11 Sheet16 Sheet17 Sheet18 READY 1 + 100% i Search the web and Windows O ENG US 04:59 15-09-20

XI 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in H104 : fi А B C D E F G H J K L M 78 79 Account No: Credit 80 Debit 81 Accounts Name: Service Revenue Date Account title and Explanation May 31 Balance May 31 Adjusting (4) May 31 Adjusting (7) 400 Balance 7,700 9,400 11,100 82 1,700 1,700 83 84 85 86 Accounts Name: Supplies Expense Date Account title and Explanation May 31 Adjusting Account No: Debit Credit 900 631 Balance 900 87 88 89 90 Accounts Name: Depreciation Expense Date Account title and Explanation May 31 Adjusting Account No: Credit Debit 717 Balance 180 91 180 92 93 94 Accounts Name: Insurance Expense Date Account title and Explanation May 31 Adjusting Account No: Debit Credit 200 722 Balance 200 95 96 97 Account No: Credit 98 Debit Accounts Name: Salaries and Wages Expense Date Account title and Explanation May 31 Balance May 31 Adjusting 726 Balance 3,300 4,620 99 100 1,320 101 729 102 103 104 Accounts Name: Rent Expense Date Account title and Explanation May 31 Balance Account No: Credit Debit Balance 1,500 105 Activate Windows Go to Settings to activate Windows. Sheet11 Sheet12 Sheet13 Sheet14 Sheet15 Sheet16 Sheet17 Sheet18 Sheet19 READY 1 + 100% 1 Search the web and Windows O ENG US 04:59 15-09-20

	Accounts Name: Rent Expense		Account No:	729
Date	Account title and Explanation	Debit	Credit	Balance
May 31	Balance			1,500
	Accounts Name: Utilities Expense		Account No:	732
Date	Account title and Explanation	Debit	Credit	Balance
May 31	Adjusting	200		200