Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2017. The trial balance at May 31 is as follows.
KRAUSE CONSULTING
Trial Balance
May 31, 2017
| Account # |
Debit |
Credit |
| 101 |
cash |
4,400 |
| 112 |
accounts receivable |
5,900 |
| 126 |
supplies |
1,800 |
| 130 |
prepaid insurance |
4,800 |
| 149 |
equipment |
10,200 |
| 201 |
accounts payable |
4,800 |
| 209 |
unearned service revenue |
2,000 |
| 301 |
owner's capital |
16,400 |
| 400 |
service revenue |
8,500 |
| 726 |
salaries and wages expense |
3,400 |
| 729 |
rent expense |
1,200 |
| 31,700 |
31,700 |
In addition to those 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:
1. $700 of supplies have been used during the month.
2. Utilities expense incurred but not paid on May 31, 2017, $300.
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. Krause Consulting has two employees, who are paid $1,000 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 $170 per month for 60 months.
7. Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.