In addition to those accounts listed on the trial balance, the chart of accounts for McGee Company also contains the following accounts and account numbers: No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand at June 30 are $750. 2. A utility bill for $150 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $2,800 of unearned service revenue has been earned at the end of the month. 5. Salaries of $1,900 are accrued at June 30. 6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months. 7. Invoices representing $1,200 of services performed during the month have not been recorded as of June 30. Instructions (a) Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. (c) Prepare an adjusted trial balance at June 30, 2012.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In addition to those accounts listed on the trial balance, the chart of accounts for McGee
Company also contains the following accounts and account numbers: No. 158 Accumulated
Depreciation
—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense,
No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense.
Other data:
1. Supplies on hand at June 30 are $750.
2. A utility bill for $150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $2,800 of unearned service revenue has been earned at the end of the month.
5. Salaries of $1,900 are accrued at June 30.
6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months.
7. Invoices representing $1,200 of services performed during the month have not been recorded as of June 30.
Instructions
(a) Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal.
(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.
(c) Prepare an adjusted trial balance at June 30, 2012.

P3-1A Tony Masasi started his own consulting firm, McGee Company, on June 1, 2012. The
trial balance at June 30 is shown below.
MCGEE COMPANY
Trial Balance
June 30, 2012
Account Number
Debit
Credit
$ 7,150
6,000
2,000
101
Cash
112
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
126
3,000
15,000
130
157
201
$ 4,500
209
Unearned Service Revenue
4,000
21,750
7,900
301
Owner's Capital
400
Service Revenue
Salaries and Wages Expense
Rent Expense
726
4,000
1,000
729
$38,150
$38,150
Transcribed Image Text:P3-1A Tony Masasi started his own consulting firm, McGee Company, on June 1, 2012. The trial balance at June 30 is shown below. MCGEE COMPANY Trial Balance June 30, 2012 Account Number Debit Credit $ 7,150 6,000 2,000 101 Cash 112 Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable 126 3,000 15,000 130 157 201 $ 4,500 209 Unearned Service Revenue 4,000 21,750 7,900 301 Owner's Capital 400 Service Revenue Salaries and Wages Expense Rent Expense 726 4,000 1,000 729 $38,150 $38,150
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