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

June 30 is shown below:

MASASI COMPANY

Trial Balance

June 30, 2008

Account Number Debit Credit

101 Cash $ 7150

112 Accounts Receivable 6000

126 Supplies 2000

130 Prepaid Insurance 3000

157 Office Equipment 15000

201 Accounts Payable $4500

209 Unearned Service Revenue 4000

301 T. Masasi, Capital 21750

400 Service Revenue 7900

726 Salaries Expense 4000

729 Rent Expense 1000

$38150 $38150

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:

i) Supplies on hand at June 30 are $600.

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

iii) Insurance expires at the rate of $250 per month.

iv) $2500 of unearned service revenue has been earned at the end of the month.

v) Salaries of $2000 are accrued at June 30.

vi) The office equipment is being depreciated at $250 per month.

vii) $1000 of services has been performed during the month but have not been recorded as of June 30.

Instructions:

a) Prepare the adjusting entries for the month of June using J3 as the journal page number.