Julie Brown started her own consulting firm, Astromech Consulting, on May 1, 2001.

The trial balance at May 31 is as follows:

In addition to those accounts listed on the trial balance, the chart of accounts for Astromech Consulting also contains the following accounts: Accumulated Depreciation—
Office Furniture, Travel Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Travel Expense, and Supplies Expense.
Other data:
1. $500 of supplies have been used during the month.
2. Travel costs incurred but not paid are $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. Astromech Consulting has two employees that are paid $500 each for a 5-day work week.
6. The office furniture has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months.
7. Invoices representing $2,000 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.

(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.

(c) Prepare an adjusted trial balance at May 31, 2001.

Transcribed Image Text:

ASTROMECH CONSULTING Trial Balance Cash Accounts Receivable Prepaid Insurance Supplies Office Furniture Accounts Payable May 31, 2001 Debit $ 6,500 Credit 4,000 3,600 1,500 12,000 $ 3,500 3,000 19,100 6,000 3,000 1,000 $31,600 $31,600 Unearned Service Revenue Common Stock Service Revenue Salaries Expense Rent Expense