A group of students from City Tech’s Hospitality Management Program invested and opened, “Catering for Any Occasion,” an off-premise catering business on June 1, 2021. The trial balance for the first month of business follows. Instructions a) Enter the totals from the trial balance as beginning account balances in the general ledger, and place a check mark in the posting reference column. See the cash account in the general ledger as an example. b) Prepare the adjusting entries for the month of June (see other data below). Use J3 as the page number for your journal. c) Post the adjusting entries to the ledger accounts. d) Prepare an adjusted trial balance at June 30, 2021. Other data: 1. $1200 of supplies has been used during the month. 2. A utility bill for $600 has not been recorded and will not be paid until next month. 3. The insurance policy is for two years. 4. $3,000 of unearned service revenue has been earned at the end of the month. 5. Salaries of $3600 are accrued at June 30. 6. The Kitchen equipment has a five-year life with no salvage value. It is being depreciated at $200 per month for 60 months. 7. Invoices representing $2,500 of services performed during the month have not been recorded as of June 30 **Trial Balance for Catering for All Occasions***Date: 30-Jun-21*| Account Number | Account Description | Debit | Credit ||----------------|------------------------------|---------|---------|| 101 | Cash | $9,600 | || 110 | Accounts Receivable | 4,000 | || 120 | Prepaid Insurance | 2,400 | || 130 | Supplies | 3,000 | || 135 | Kitchen Equipment | 21,000 | || 200 | Accounts Payable | | $6,000 || 230 | Unearned Service Revenue | | 5,000 || 311 | Common Stock | | 28,000 || 320 | Retained Earnings | | 0 || 400 | Service Revenue | | 6,000 || 510 | Salaries Expense | 4,000 | || 520 | Rent Expense | 1,000 | |**Totals** - **Debit:** $45,000 - **Credit:** $45,000 This trial balance is a financial statement that lists the balances of all accounts in a company's general ledger as of June 30, 2021. The purpose of a trial balance is to ensure that debits equal credits, indicating that the company's ledger is mathematically correct. **General Journal**Date: 2021**Adjusting Entries**- **June 30** - **Account Titles and Explanation** - Supplies Expense — Debit: 560 - Supplies — Credit: 130- **June 30** - **Account Titles and Explanation** - Utilities Expense — Debit: 550 - Utilities Payable — Credit: 210- **June 30** - **Account Titles and Explanation** - Insurance Expense — Debit: 540 - Prepaid Insurance — Credit: 120- **June 30** - **Account Titles and Explanation** - Unearned Revenue — Debit: 230 - Service Revenue — Credit: 400- **June 30** - **Account Titles and Explanation** - Salaries Expense — Debit: 510 - Salaries Payable — Credit: 220- **June 30** - **Account Titles and Explanation** - Depreciation Expense—Kitch. Equip — Debit: 530 - Accumulated Depreciation—Kitch. Equip — Credit: 136- **June 30** - **Account Titles and Explanation** - Accounts Receivable — Debit: 110 - Service Revenue — Credit: 400(Note: The "Ref." column is not populated in this journal entry.)

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Description: A group of students from City Tech’s Hospitality Management Program invested and opened, “Catering for Any Occasion,” an off-premise catering business on June 1, 2021. The trial balance for the first month of business follows. Instructions a) Enter t

Ledger account: It is used to record the business transactions that were made during a financial…

Answered: A group of students from City Tech’s…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A group of students from City Tech’s Hospitality Management Program invested and opened, “Catering for Any Occasion,” an off-premise catering business on June 1, 2021. The trial balance for the first month of business follows. Instructions a) Enter the totals from the trial balance as beginning account balances in the general ledger, and place a check mark in the posting reference column. See the cash account in the general ledger as an example. b) Prepare the adjusting entries for the month of June (see other data below). Use J3 as the page number for your journal. c) Post the adjusting entries to the ledger accounts. d) Prepare an adjusted trial balance at June 30, 2021. Other data: 1. $1200 of supplies has been used during the month. 2. A utility bill for $600 has not been recorded and will not be paid until next month. 3. The insurance policy is for two years. 4. $3,000 of unearned service revenue has been earned at the end of the month. 5. Salaries of $3600 are accrued at June 30. 6. The Kitchen equipment has a five-year life with no salvage value. It is being depreciated at $200 per month for 60 months. 7. Invoices representing $2,500 of services performed during the month have not been recorded as of June 30

**Trial Balance for Catering for All Occasions**

*Date: 30-Jun-21*

| Account Number | Account Description | Debit | Credit |
|----------------|------------------------------|---------|---------|
| 101 | Cash | $9,600 | |
| 110 | Accounts Receivable | 4,000 | |
| 120 | Prepaid Insurance | 2,400 | |
| 130 | Supplies | 3,000 | |
| 135 | Kitchen Equipment | 21,000 | |
| 200 | Accounts Payable | | $6,000 |
| 230 | Unearned Service Revenue | | 5,000 |
| 311 | Common Stock | | 28,000 |
| 320 | Retained Earnings | | 0 |
| 400 | Service Revenue | | 6,000 |
| 510 | Salaries Expense | 4,000 | |
| 520 | Rent Expense | 1,000 | |

**Totals**
- **Debit:** $45,000
- **Credit:** $45,000

This trial balance is a financial statement that lists the balances of all accounts in a company's general ledger as of June 30, 2021. The purpose of a trial balance is to ensure that debits equal credits, indicating that the company's ledger is mathematically correct.

**General Journal**

Date: 2021

**Adjusting Entries**

- **June 30**
- **Account Titles and Explanation**
- Supplies Expense — Debit: 560
- Supplies — Credit: 130

- **June 30**
- **Account Titles and Explanation**
- Utilities Expense — Debit: 550
- Utilities Payable — Credit: 210

- **June 30**
- **Account Titles and Explanation**
- Insurance Expense — Debit: 540
- Prepaid Insurance — Credit: 120

- **June 30**
- **Account Titles and Explanation**
- Unearned Revenue — Debit: 230
- Service Revenue — Credit: 400

- **June 30**
- **Account Titles and Explanation**
- Salaries Expense — Debit: 510
- Salaries Payable — Credit: 220

- **June 30**
- **Account Titles and Explanation**
- Depreciation Expense—Kitch. Equip — Debit: 530
- Accumulated Depreciation—Kitch. Equip — Credit: 136

- **June 30**
- **Account Titles and Explanation**
- Accounts Receivable — Debit: 110
- Service Revenue — Credit: 400

(Note: The "Ref." column is not populated in this journal entry.)

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