Question

Pina Colada started her own consulting firm, Pina Colada Corp., on May 1, 2022. The unadjusted trial balance at May 31 is as follows.

Pina Colada Corp. Trial Balance May 31, 2022
Account Number				Debit		Credit
101		Cash		$ 4,770
112		Accounts Receivable		6,360
126		Supplies		2,014
130		Prepaid Insurance		3,816
149		Equipment		12,240
201		Accounts Payable				$ 2,332
209		Unearned Service Revenue				2,120
311		Common Stock				21,356
400		Service Revenue				7,950
726		Salaries and Wages Expense		3,604
729		Rent Expense		954
				$33,758		$33,758

In addition to those accounts listed on the trial balance, the chart of accounts for Pina Colada Corp. 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.		$954 of supplies have been used during the month.
2.		Utilities expense incurred but not paid or recorded on May 31, 2022, $265.
3.		An insurance policy for 2 years was purchased on May 1.
4.		$424 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. Nardelli Consulting has two employees, who are paid $740 each for a 5-day work week.
6.		The equipment has a 5-year life with no salvage value. It is being depreciated at $204 per month for 60 months.
7.		Invoices representing $1,802 of services performed during the month have not been recorded as of May 31.

Partially correct answer iconYour answer is partially correct.

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	Debit	Credit
1.	May 31	enter an account title for the first adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the first adjusting entry on may 31	enter a debit amount	enter a credit amount
2.	May 31	enter an account title for the second adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the second adjusting entry on may 31	enter a debit amount	enter a credit amount
3.	May 31	enter an account title for the third adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the third adjusting entry on may 31	enter a debit amount	enter a credit amount
4.	May 31	enter an account title for the fourth adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the fourth adjusting entry on may 31	enter a debit amount	enter a credit amount
5.	May 31	enter an account title for the fifth adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the fifth adjusting entry on may 31	enter a debit amount	enter a credit amount
6.	May 31	enter an account title for the sixth adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the sixth adjusting entry on may 31	enter a debit amount	enter a credit amount
7.	May 31	enter an account title for the seventh adjusting entry on may 31	enter a debit amount	enter a credit amount
		enter an account title for the seventh adjusting entry on may 31	enter a debit amount	enter a credit amount

b\ Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.)

C\ Prepare an adjusted trial balance

Answer 1

1.

Date	Accounts Title	Debit	Credit
May 31	Supplies Expense	954
	Supplies		954
May 31	Utilities Expense	265
	Accounts Payable		265
May 31	Insurance Expense [3816/ 24months]	159
	Prepaid Insurance		159
May 31	Unearned Service Revenue [2120 - 424]	1696
	Service Revenue		1696
May 31	Salaries and Wages Expense [740 x 2 x 3/5]	888
	Salaries and Wages Payable		888
May 31	Depreciation Expense	204
	Accumulated Depreciation, Equipment		204
May 31	Accounts Receivable	1802
	Service Revenue		1802

2.

Cash No.101

Date	Explanation		Debit	Credit	Balance
May 31	Balance		4770		4770

Accounts Receivable No.112

May 31	Balance		6360		6360
May 31	Adjusting Entry		1802		8162

Supplies No. 126

May 31	Balance		2014		2014
May 31	Adjusting Entry			954	1060

Prepaid Insurance No.130

May 31	Balance		3816		3816
May 31	Adjusting Entry			159	3657

Equipment No. 149

May 31	Balance		12240		12240

Accumulated Depreciation, Equipment No.150

May 31	Adjusting Entry			204	204

Accounts Payable No. 201

May 31	Balance			2332	2332
May 31	Adjusting Entry			265	2597

Unearned Service Revenue No. 209

May 31	Balance			2120	2120
May 31	Adjusting Entry		1696		424

Salaries and Wages Payable No.212

May 31	Adjusting Entry			888	888

Common Stock. No. 311

May 31	Balance			21356	21356

Service Revenue No. 400

May 31	Balance			7950	7950
May 31	Adjusting Entry			1696	9646
May 31	Adjusting Entry			1802	11448

Salaries and Wages Expense No.726

May 31	Balance		3604		3604
May 31	Adjusting Entry		888		4492

Rent Expense No. 729

May 31	Balance		954		954

Supplies Expense No. 631

May 31	Adjusting Entry		954		954

Depreciation Expense No. 717

May 31	Adjusting Entry			204	204

Insurance Expense No. 722

May 31	Adjusting Entry		159		159

Utilities Expense No.732

May 31	Adjusting Entry		265		265

3.

Accounts	Debit	Credit
Cash	4770
Accounts Receivable	8162
Supplies	1060
Prepaid Insurance	3657
Equipment	12240
Accumulated Depreciation, Equipment		204
Accounts Payable		2597
Unearned Service Revenue		424
Salaries and Wages Payable		888
Common Stock		21356
Service Revenue		11448
Salaries and Wages Expense	4492
Rent Expense	954
Supplies Expense	954
Depreciation Expense	204
Insurance Expense	159
Utilities Expense	265
Totals	$36,917	$36,917