Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2019. The trial balance at May 31 is as follows.
Krause Consulting
Trial Balance
May 31, 2019
Trial Balance
May 31, 2019
In addition to dose accounts listed on the trial balance, the chart of accounts for Krause 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
- $900 of supplies have been used during the month.
- Utilities expense incurred but not paid on May 31, 2019, $250.
- The insurance policy is for 2 years.
- $400 of the balance in the unearned service revenue account remains unearned at the end of the month.
- May 31 is a Wednesday, and employees are paid on Friday, Krause Consulting has two employees, who are paid $920 each for a 5-day work week.
- The office furniture has a 5-year life with no salvage value. It is being depreciated at $190 per month for 60 months.
- Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.
Instructions
- Prepare the adjusting entries for the month of May. Use J4 as the page number for your journal.
- Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.
- Prepare an adjusted trial balance at May 31, 2019
Answer
a.
Krause Consulting
Adjusting Journal Entries
Adjusting Journal Entries
b.
Krause Consulting
General Ledger
General Ledger
c.
Krause Consulting
Adjusted Trial Balance
May 31, 2019
Adjusted Trial Balance
May 31, 2019
Total Trial Balance = $37,944