Problem: Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial balance at June 30 is as follows.
LUMAS CONSULTING Trial Balance June 30, 2014
|
Cash
|
$ 6,850
|
|
|
Accounts Receivable
|
7,000
|
|
|
Supplies
|
2,053
|
|
|
Prepaid Insurance
|
3,240
|
|
|
Equipment
|
15,000
|
|
|
Accounts Payable
|
|
$ 4,260
|
|
Unearned Service Revenue
|
|
5,200
|
|
Common Stock
|
|
22,143
|
|
Service Revenue
|
|
8,000
|
|
Salaries and Wages Expense
|
4,000
|
|
|
Rent Expense
|
1,460
|
|
|
|
$39,603
|
$39,603
|
In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also contains the following accounts: Accumulated Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.
Other data:
1. Supplies on hand at June 30 total $850.
2. A utility bill for $215 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. Services were performed for $4,323 of unearned service revenue by the end of the month.
5. Salaries of $1,387 are accrued at June 30.
6. The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.
7. Invoices representing $4,105 of services performed during the month have not been recorded as of June 30.
Required:
Prepare an adjusted trial balance at June 30, 2014.
Attachment:- 8838816_Solution (2).xlsx
Attachment:- LumusAccountingAdjustingEntries (1).png