Julie Brown started her own consulting firm, Wedding Consulting, on May 1, 2004. The trial balance at May 31 is as follows. LO6 WEDDING CONSULTING Trial Balance May 31, 2004 Account Number Debit Credit 101 Cash $ 6,500 110 Accounts Receivable 4,000 120 Prepaid Insurance 3,600 130 Supplies 1,500 135 Office Furniture 12,000 200 Accounts Payable $ 3,500 230 Unearned Service Revenue 3,000 311 Common Stock 19,100 400 Service Revenue 6,000 510 Salaries Expense 3,000 520 Rent Expense 1,000 $31,600 $31,600 In addition to those accounts listed on the trial balance, the chart of accounts for Wedding Consulting also contains the following accounts and account numbers: No. 136 Accumulated Depreciation—
Office Furniture, No. 210 Travel Payable, No. 220 Salaries Payable, No. 530 Depreciation Expense, No. 540 Insurance Expense, No. 550 Travel Expense, and No. 560 Supplies Expense.
Other data:
1. $500 of supplies have been used during the month.
2. Travel expense incurred but not paid on May 31, 2003, $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. Wedding Consulting has two employees, who are paid $500 each for a 5-day workweek.
6. The office furniture has a 5-year life with no salvage value. It 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. 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, 2004.
FINANCIAL REPORTING PROBLEM: Hilton Hotels Corporation