Complete Financial Accounting problem below: Instructions · (a)Prepare the adjusting entries for the

Complete Financial Accounting problem below:

Instructions

·       (a)Prepare the adjusting entries for the month of June.

·       (b)Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Use T-accounts.)

(b) Service rev.

$16,300

·       (c)Prepare an adjusted trial balance at June 30, 2014.

(c) Tot. trial balance

$45,310

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

 

Debit  

Credit  

Cash

$ 6,850     

 

Accounts Receivable

7,000     

 

Supplies

2,000     

 

Prepaid Insurance

2,880     

 

Equipment

15,000     

 

Accounts Payable

 

         $ 4,230     

Unearned Service Revenue

 

5,200     

Common Stock

 

22,000     

Service Revenue

 

8,300     

Salaries and Wages Expense

4,000     

 

Rent Expense

  2,000     

           

 

$39,730     

$39,730     

In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also contains the following accounts: Accumulated Depreciation—Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.

 

Other data:

·       1.Supplies on hand at June 30 total $720.

·       2.A utility bill for $180 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 $4,100 of unearned service revenue by the end of the month.

·       5.Salaries of $1,250 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 $3,900 of services performed during the month have not been recorded as of June 30.

    • Posted: 4 years ago
    • Due: 29/11/2015
    • Budget: $5

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