Linda Ace started her own consulting firm, Modine Consulting, on May 1, 2008. The Prepare adjusting entries, post trial balance at May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Modine Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation—Office Furniture, No. 229 Travel Payable, No. 212 Salaries Payable, No. 717 Depreciation Expense, No. 722 Insurance Expense, No. 736 Travel Expense, and No. 631 Supplies Expense.

Other data:

1. \($500\) of supplies have been used during the month.

2. Travel expense incurred but not paid on May 31, 2008, \($200.

3.\) The insurance policy is for 2 years.

4. \($1,000\) 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. Modine Consulting has two employees, who are paid \($700\) each for a 5-day work week.

6. The office furniture has a 5-year life with no salvage value. It is being depreciated at \($160\) per month for 60 months.

7. Invoices representing \($1,000\) of services performed during the month have not been recorded as of May 31.

Instructions

(a) Prepare the adjusting entries for the month of May. Use J4 as the page number for your journal.

(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.

(c) Prepare an adjusted trial balance at May 31, 2008.

Transcribed Image Text:

MODINE CONSULTING Trial Balance May 31, 2008 Account Number Debit Credit 101 Cash $ 7,700 112 Accounts Receivable. 4,000 126 Supplies 1,500 130 Prepaid Insurance 4,800 149 Office Furniture 9,600 201 Accounts Payable $ 3,500 209 Unearned Service Revenue 3,000 301 L. Ace, Capital 19,100 400 Service Revenue 6,000 726 729 Salaries Expense Rent Expense 3,000 1,000 $31,600 $31,600