Tony Masasi started his own consulting firm, Masasi Company, on June 1, 2008. The trial balance at June 30 is shown.

In addition to those accounts listed on the trial balance, the chart of accounts for Masasi Company also contains the following accounts and account numbers: No. 158 Accumulated Depreciation- Office Equipment, No. 244 Utilities Payable, No. 212 Salaries Payable, No. 711 Depreciation Expense, No. 722 Insurance Expense, No. 732 Utilities Expense, and No. 631 Supplies Expense. Other data:

1. Supplies on hand at June 30 are \($600.

2.\) A utility bill for \($150\) has not been recorded and will not be paid until next month.

3. The insurance policy is for a year.

4. \($2,500\) of unearned service revenue has been earned at the end of the month.

5. Salaries of \($2,000\) are accrued at June 30.

6. The office equipment has a 5-year life with no salvage value. It is being depreciated at \($250\) per month for 60 months.

7. Invoices representing \($1,000\) of services performed during the month have not been recorded as of June 30. 

Instructions

(a) Prepare the adjusting entries for the month of June. Use 13 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 June 30, 2008.

Transcribed Image Text:

MASASI COMPANY Trial Balance June 30, 2008 Account Number Debit Credit 101 Cash $ 7,150 112 Accounts Receivable 6,000 126 Supplies 2,000 130 Prepaid Insurance 3,000 157 Office Equipment 15,000 201 Accounts Payable $ 4,500 209 Unearned Service Revenue 4,000 301 T. Masasi, Capital 400 Service Revenue 21,750 7,900 726 729 Salaries Expense Rent Expense 4,000 1,000 $38,150 $38,150