Question

James Polk started his own consulting firm, Polk Consulting, Inc. on May 1, 2020. The trial balance at May 31 is shown on a separate sheet.

Other data:

1. $1,200 of supplies remain in the supply room at the end of the month.

2. Utilities expense incurred but not paid on May 31, 2020 are $280.

3. The insurance policy is for 18 months when it was issued

4. $1,100 of the balance in the unearned service revenue account was earned during the month.

5. May 31 is a Wednesday, and employees are paid on Fridays. Polk Consulting, Inc. has two employees, who are paid $600 each for a 5-day work week.

6. The equipment has a 5-year life with no salvage value. It is being depreciated at $180 per month for 60 months.

7. Invoices representing $1,300 of services performed during the month have not been recorded as of May 31.

Instructions

(a) Prepare the adjusting entries for the month of May.

(b) Enter the adjusting entries on the worksheet.

(c) Prepare an adjusted trial balance at May 31, 2020.

Enter answers in a excel sheet as follows:

Unadjusted Trial Balance Adjusted Trial Balance Adjustments Credit Debit Credit Debit Credit Debit 5,700 6,000 1,900 3,600 10,800 4,500 2,000 Number Account 101 Cash 112 Accounts Receivable 126 Supplies 130 Prepaid Insurance 157 Equipment 158 Accumulated Depreciation - Equipment 201 Accounts Payable 209 Unearned Service Revenue 212 Salary and Wages Payable 311 Common Stock 400 Service Revenue 631 Supplies Expense 711 Depreciation Expense 722 Insurance Expense 726 Salaries and Wages Expense 729 Rent Expense 736 Utilities Expense 18,300 7,500 3,400 900 32,300 32,300

Answer 1

	Unadjsuted Trail Bal	Adjustments	Adjusted Trial Bal
Particulars	Debit	Credit	Debit	Credit	Debit	Credit
Cash	5,700.00				5,700.00	-
Accounts Reciavble	6,000.00		1,300.00		7,300.00
Supplies	1,900.00			700.00	1,200.00
Prepaid Insurance	3,600.00			200.00	3,400.00
Equipment	10,800.00				10,800.00	-
Accumalated Depreciation Equipment				180.00		180.00
Acounts Payable		4,500.00		280.00		4,780.00
Unearned Service Revenue		2,000.00	1,100.00			900.00
Salary and wages payable				720.00		720.00
Common Stock		18,300.00			-	18,300.00
Service Revenue		7,500.00		2,400.00		9,900.00
Supplies expense			700.00		700.00
Depreciation Expense			180.00		180.00
Insurance expenses			200.00		200.00
Salary and wages	3,400.00		720.00		4,120.00
Rent Expenses	900.00				900.00	-
Utility Expenses			280.00		280.00
	32,300.00	32,300.00	4,480.00	4,480.00	34,780.00	34,780.00
Particulars	Debit	Credit
Supplies expense	700.00
Supplies		700.00
Utility Expenses	280.00
Acounts Payable		280.00
Insurance expenses	200.00
Prepaid Insurance		200.00
Unearned Service Revenue	1,100.00
Service Revenue		1,100.00
Salary and wages	720.00
Salary and wages payable		720.00
Depreciation Expense	180.00
Accumalated Depreciation Equipment		180.00
Accounts Reciavble	1,300.00
Service Revenue		1,300.00

Working 1

Salary = (600*3/5)*2=720