Question

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 Number				Debit		Credit
101		Cash		$ 4,400
112		Accounts Receivable		6,200
126		Supplies		1,900
130		Prepaid Insurance		4,800
149		Equipment		12,000
201		Accounts Payable				$ 4,800
209		Unearned Service Revenue				2,100
301		Owner’s Capital				19,700
400		Service Revenue				7,500
726		Salaries and Wages Expense		3,400
729		Rent Expense		1,400
				$34,100		$34,100

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.		$800 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.		$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. Krause Consulting has two employees, who are paid $1,100 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 $200 per month for 60 months.
7.		Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances.

Answer 1