Question

Len David started his own consulting firm, David Consulting, on June 1, 2022. The trial balance at June 30 is as follows. DAVID CONSULTING Trial Balance June 30, 2022 Debit Credit Cash $ 6,850 Accounts Receivable 7,000 Supplies 1,992 Prepaid Insurance 3,120 Equipment 15,000 Accounts Payable $ 4,270 Unearned Service Revenue 5,200 Common Stock 21,992 Service Revenue 8,300 Salaries and Wages Expense 4,000 Rent Expense 1,800 $39,762 $39,762

Answer 1

Adjusting Entries:

	Date	Account title and Explanation	Debit	Credit
1	June 30	Supplies expense [1,992-720]	$1,272
		Supplies		$1,272
		[To record supplies expense]
2	June 30	Utilities expense	$200
		Accounts payable		$200
		[To record utilities expense]
3	June 30	Insurance expense[3,120/12]	$260
		Prepaid insurance		$260
		[To record insurance expense]
4	June 30	Unearned service revenue	$4,400
		Service revenue		$4,400
		[To record revenue from unearned]
5	June 30	Salaries and wages expense	$1,250
		Salaries and wages payable		$1,250
		[To record accrued salaries expense]
6	June 30	Depreciation expense	$250
		Accumulated depreciation-equipment		$250
		[To record depreciation expense]
7	June 30	Accounts receivable	$4,390
		Service revenue		$4,390
		[To record accrued service revenue]

T-accounts:

Cash
Beg. Bal.	$6,850
Accounts receivable
Beg. Bal.	$7,000
June 30	$4,390
End. Bal.	$11,390
Supplies
Beg. Bal.	$1,992	June 30	$1,272
End. Bal.	$720
Prepaid insurance
Beg. Bal.	$3,120	June 30	$260
End. Bal.	$2,860
Equipment
Beg. Bal.	$15,000
Accumulated depreciation
		June 30	$250
		End. Bal.	$250
Accounts payable
		Beg. Bal.	$4,270
		June 30	$200
		End. Bal.	$4,470
Salaries and Wages payable
		June 30	$1,250
		End. Bal.	$1,250
Unearned Service revenue
June 30	$4,400	Beg. Bal.	$5,200
		End. Bal.	$800
Common stock
		Beg. Bal.	$21,992
Service revenue
		Beg. Bal.	$8,300
		June 30	$4,400
		June 30	$4,390
		End. Bal.	$17,090
Salaries and wages expense
Beg. Bal.	$4,000
June 30	$1,250
End. Bal.	$5,250
Rent expense
Beg. Bal.	$1,800
Depreciation Expense
June 30	$250
End. Bal.	$250
Insurance Expense
June 30	$260
End. Bal.	$260
Utilities expense
June 30	$200
End. Bal.	$200
Supplies expense
June 30	$1,272
End. Bal.	$1,272

Adjusted Trial Balance:

DAVID CONSULTING
Adjusted Trial Balance
For the month ended June 30,2022
Account title	Debit	Credit
Cash	$6,850
Accounts receivable	$11,390
Supplies	$720
Prepaid insurance	$2,860
Equipment	$15,000
Accumulated depreciation		$250
Accounts payable		$4,470
Salaries and Wages payable		$1,250
Unearned Service revenue		$800
Common stock		$21,992
Service revenue		$17,090
Salaries and wages expense	$5,250
Rent expense	$1,800
Depreciation Expense	$250
Insurance Expense	$260
Utilities expense	$200
Supplies expense	$1,272
Totals	$45,852	$45,852