Question

Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2021. The trial balance at June 30 is as follows.

Lumas CONSULTING Trial Balance June 30, 2021
		Debit		Credit
Cash		$ 6,850
Accounts Receivable		7,000
Supplies		1,982
Prepaid Insurance		3,360
Equipment		15,000
Accounts Payable				$ 4,220
Unearned Service Revenue				5,200
Common Stock				21,982
Service Revenue				8,300
Salaries and Wages Expense		4,000
Rent Expense		1,510
		$39,702		$39,702

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 $240 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 $4,150 of unearned service revenue by the end of the month.
5.		Salaries of $1,280 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 $4,100 of services performed by Lumas during the month have not been recorded as of June 30.

QUESTION:

A) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Use T-Accounts.) (Post entries in the order of journal entries presented in the previous question.)

B) Prepare an adjusted trial balance at June 30, 2021.

Answer 1

Cash
Beg. Bal.	$6850
Accounts Receivable
Beg. Bal.	$7000
6/30	4100
End. Bal.	$11100
Supplies
Beg. Bal.	$1982	6/30	1262
End. Bal.	$720
Prepaid Insurance
Beg. Bal.	$3360	6/30	280
End. Bal.	$3080
Equipment
Beg. Bal.	$15000
Accumulated depreciation- Equipment
		6/30	$250
		End. Bal.	$250
Accounts Payable
		Beg. Bal.	$4220
		6/30	240
		End. Bal.	$4460
Salaries and Wages Payable
		6/30	$1280
		End. Bal.	$1280
Unearned Service Revenue
6/30	4150	Beg. Bal	$5200
		End. Bal.	$1050
Common Stock
		Beg. Bal.	$21982
Service Revenue
		Beg. Bal.	$8300
		6/30	4150
		6/30	4100
		End. Bal.	$16550
Salaries and Wages Expense
Beg. Bal.	$4000
6/30	1280
End. Bal.	$5280
Rent Expense
Beg. Bal.	$1510
Depreciation expense
6/30	$250
End. Bal.	$250
Insurance expense
6/30	$280
End. Bal.	$280
Utilities Expense
6/30	$240
End. Bal.	$240
Supplies Expense
6/30	$1262
End. Bal.	$1262

LUMAS CONSULTING
Adjusted Trial Balance
June 30, 2021
Cash	$6850
Account Receivable	11100
Prepaid Insurance	3080
Supplies	720
Equipment	15000
Accumulated depreciation- Equipment		250
Account Payable		4460
Salaries and Wages Payable		1280
Unearned Service Revenue		1050
Common Stock		21982
Service Revenue		16550
Salaries and Wages Expense	5280
Rent Expense	1510
Depreciation expense	250
Insurance Expense	280
Utilities Expense	240
Supplies Expense	1262
Total	$45572	$45572