Refer to Exercise 2-18 of Chapter 2. Start from the unadjusted trial balance and the posted T-accounts that Lee Management Consulting prepared at June 30. Make sure the account balances in your trial balance and T-accounts match those in the trial balance at June 30, 2016, shown on the next page.

At June 30, the company gathers the following information for the adjusting entries:
a. Accrued service revenue, $400.
b. Earned $800 of the service revenue collected in advance on June 21 for eight days of work.
c. Supplies remaining on hand at June 30, $100.
d. Amortization expense-equipment, $42; furniture, $167 (all amounts are rounded to the nearest dollar).
e. Accrued $500 expense for the secretary's salary.
Required
1. Open these new T-accounts: Accumulated Amortization-Equipment; Accumulated
Amortization-Furniture; Salaries Payable; Amortization Expense-Equipment;
Amortization Expense-Furniture; Salaries Expense; Supplies Expense.
2. Journalize each of the entries.
3. Post the adjusting entries into the T-accounts. Label each adjusting amount as Adj . and an account balance as Bal .
4. Prepare an adjusted trial balance at June 30, 2016. List expenses in alphabetical order.
5. Prepare the income statement and statement of owner's equity of Lee Management Consulting for the month ended June 30, 2016, then prepare the balance sheet at that date.

Transcribed Image Text:

LEE MANAGEMENT CONSULTING Unadjusted Trial Balance June 30, 2016 Debits Credits Cash Accounts receivable Supplies Equipment Furniture Accounts payable Unearned revenue Michael Lee, capital Michael Lee, withdrawals ervice revenue Rent expense Utilities expense Total $23,750 1,500 500 1,000 5,000 $ 5,000 2,000 25,000 2,000 5,000 3,000 250 $37,000 $37,000