Elizabeth Brown started her own consulting firm, Brown Consulting, on May 1, 2020. The trial balance at May 31 is as follows. BROWN CONSULTING Trial Balance May 31, 2020 Account Number Debit Credit 101 Cash $ 4,600 112 Accounts Receivable 6,200 126 Supplies 2,100 130 Prepaid Insurance 2,400 149 Equipment 10,800 201 Accounts Payable $ 4,800 209 Unearned Service Revenue 1,900 301 Owner’s Capital 16,300 400 Service Revenue 7,900 726 Salaries and Wages Expense 3,300 729 Rent Expense 1,500 $30,900 $30,900 In addition to those accounts listed on the trial balance, the chart of accounts for Brown 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. $1,100 of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2020, $200. 3. The insurance policy is for 2 years. 4. $400 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. Brown 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 $180 per month for 60 months. 7. Invoices representing $1,600 of services performed during the month have not been recorded as of May 31. Prepare the adjusting entries for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Ref. Debit Credit 1. May 31 631 126 2. May 31 732 201 3. May 31 722 130 4. May 31 209 400 5. May 31 726 212 6. May 31 717 150 7. May 31 112 400

Elizabeth Brown started her own consulting firm, Brown Consulting, on May 1, 2020. The trial balance at May 31 is as follows. BROWN CONSULTING Trial Balance May 31, 2020 Account Number Debit Credit 101 Cash $ 4,600 112 Accounts Receivable 6,200 126 Supplies 2,100 130 Prepaid Insurance 2,400 149 Equipment 10,800 201 Accounts Payable $ 4,800 209 Unearned Service Revenue 1,900 301 Owner’s Capital 16,300 400 Service Revenue 7,900 726 Salaries and Wages Expense 3,300 729 Rent Expense 1,500 $30,900 $30,900 In addition to those accounts listed on the trial balance, the chart of accounts for Brown 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. $1,100 of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2020, $200. 3. The insurance policy is for 2 years. 4. $400 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. Brown 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 $180 per month for 60 months. 7. Invoices representing $1,600 of services performed during the month have not been recorded as of May 31. Prepare the adjusting entries for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Ref. Debit Credit 1. May 31 631 126 2. May 31 732 201 3. May 31 722 130 4. May 31 209 400 5. May 31 726 212 6. May 31 717 150 7. May 31 112 400

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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Question

Elizabeth Brown started her own consulting firm, Brown Consulting, on May 1, 2020. The trial balance at May 31 is as follows.

BROWN CONSULTING Trial Balance May 31, 2020
Account Number		Debit	Credit
101	Cash	$ 4,600
112	Accounts Receivable	6,200
126	Supplies	2,100
130	Prepaid Insurance	2,400
149	Equipment	10,800
201	Accounts Payable		$ 4,800
209	Unearned Service Revenue		1,900
301	Owner’s Capital		16,300
400	Service Revenue		7,900
726	Salaries and Wages Expense	3,300
729	Rent Expense	1,500
		$30,900	$30,900

In addition to those accounts listed on the trial balance, the chart of accounts for Brown 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.		$1,100 of supplies have been used during the month.
2.		Utilities expense incurred but not paid on May 31, 2020, $200.
3.		The insurance policy is for 2 years.
4.		$400 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. Brown 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 $180 per month for 60 months.
7.		Invoices representing $1,600 of services performed during the month have not been recorded as of May 31.

Prepare the adjusting entries for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Ref.	Debit	Credit
1.	May 31		631
			126
2.	May 31		732
			201
3.	May 31		722
			130
4.	May 31		209
			400
5.	May 31		726
			212
6.	May 31		717
			150
7.	May 31		112
			400

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Post entries in the order of journal entries presented in the previous part.)

Cash				No. 101
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Accounts Receivable				No. 112
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Supplies				No. 126
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Prepaid Insurance				No. 130
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Equipment				No. 149
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Accumulated Depreciation—Equipment				No. 150
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4
Accounts Payable				No. 201
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Unearned Service Revenue				No. 209
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Salaries and Wages Payable				No. 212
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4
Owner’s Capital				No. 301
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Service Revenue				No. 400
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
May 31	Adjusting	J4
Supplies Expense				No. 631
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4
Depreciation Expense				No. 717
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4
Insurance Expense				No. 722
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4
Salaries and Wages Expense				No. 726
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J4
Rent Expense				No. 729
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Utilities Expense				No. 732
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J4

Prepare an adjusted trial balance at May 31, 2020.

BROWN CONSULTING Adjusted Trial Balance May 31, 2020For the Year Ended May 31, 2020For the Month Ended May 31, 2020
	Debit	Credit
	$	$
















Totals	$	$

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