Pension Consultants is a new firm organized January 1, 19 _ , t o help other compa¬

nies to develop employee pension plans which will meet the complex legal and ac¬

counting requirements imposed by federal regulations for all pension plans. Some clients of the company pay in advance for advisory services; others are billed after the services have been rendered. The company adjusts and closes its accounts each month. At May 31, the trial balance appeared as follows: LO8

Other data

(a) The monthly rent was $600.

(b) Office supplies on hand May 31 amounted to $900.

(c) The office equipment was purchased on January 1. The useful life was estimated at 9 years.

(d) Fees of $4,000 were earned during the month by performing services for clients who had paid in advance. (Debit Unearned Revenue.)

(e) Pension advisory services rendered during the month but not yet collected or billed to clients amounted to $1,200. (Debit Pension Service Receivables.)
(f ) Salaries earned by employees during the month but not yet paid amounted to $300.
Instructions a Prepare adjusting entries.
b Prepare an adjusted trial balance. Accounts not appearing in the trial balance but used in the adjusting entries should be listed in the proper sequence in the ad¬
justed trial balance. For example, Pension Service Receivables should be listed among the assets, and Rent Expense should be listed among the expense accounts.

Transcribed Image Text:

PENSION CONSULTANTS Trial Balance May 31, 19 $20,000 3,000 1,100 10,800 $ 400 2,000 19,000 16,000 700 13,000 800 1,000 13,000 $50,400 $50,400 Cash Prepaid rent. Office supplies Office equipment. Accumulated depreciation: office equipment. Accounts payable . Unearned revenue Kay Brett, capital. Kay Brett, drawing. Fees earned. Telephone expense Travel expense. Salaries expense.