On July 31, 2019, after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below.

INSTRUCTIONS

1. Prepare a partial worksheet with the following sections: Trial Balance, Adjustments, and Adjusted Trial Balance. Use the data about the firm's accounts and balances to complete the Trial Balance section.

2. Enter the adjustments described below in the Adjustments section. Identify each adjustment with the appropriate letter.

3. Complete the Adjusted Trial Balance section

ADJUSTMENTS
a. On July 31, an inventory of the supplies showed that items costing $630 were on hand.
b. On July 1, the firm paid $10,500 in advance for six months of rent.
c. On July 1, the firm purchased a one-year insurance policy for $2,220.
d. On July 1, the firm paid $400 interest in advance on a four-month note that it issued to the bank.
e. On July 1, the firm purchased office furniture for $14,760. The furniture is expected to have a useful life of eight years and a salvage value of $1,800.
f. On July 1, the firm purchased office equipment for $7,250. The equipment is expected to have
a useful life of five years and a salvage value of $1,850.
g. On July 1, the firm issued a three-month, 6 percent note for $9,800.
h. On July 1, the firm received a consulting fee of $6,000 in advance for a one-year period.
Analyze:
By what total amount were the expense accounts of the business adjusted?

Transcribed Image Text:

$25,510 Dr 1,440 Dr 960 Dr. 0,500 Dr 2,220 Dr. 400 Dr. 14,760 Dr. Cash Accounts Recelvable Supplles Prepald Rent Prepald Insurance Prepald Interest Furniture Accumulated Depreclatlon-Furnlture Equlpment Accumulated Depreclation-Equlpment Notes Payable Accounts Payable Interest Payable Unearned Consulting Fees Michael Domenicl, Capltal Michael Domenicl, Drawing Consulting Fees Salarles Expense Utlitles Expense Telephone Expense Supplles Expense Rent Expense Insurance Expense Depreclatlon Expense-Furniture Depreclation Expense- Equipment Interest Expense 7,250 Dr. 17,700 Cr. 5,500 Cr. 6,000 Cr 32,520 Cr 3,000 Dr. 9,000 Cr 4,200 Dr. 270 Dr. 210 Dr.