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3. Michael Davidson started his own hospitality consulting firm, Star Company, on June 1, 2008. Star Company performs feasibility studies to determine if restaurants

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3. Michael Davidson started his own hospitality consulting firm, Star Company, on June 1, 2008. Star Company performs feasibility studies to determine if restaurants should be opened at certain locations. The trial balance at June 30 is as follows. Cash Accounts Receivable Prepaid Insurance Supplies Office Equipment Accounts Payable Star Company Debit $7,700 4000 2400 1500 11000 Credit Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Total Adjustable entries: (1) $500 of supplies has been used during the month. 3500 $3,000 19100 0 6000 4000 1000 $31,600 $31,600 (2) A utility bill for $200 has not been recorded and will not be paid until next month. (3) The insurance policy is for two years. (4) $1,000 of unearned service revenue has been earned at the end of the month. (5) Salaries of $600 are accrued at June 30. (6) The office equipment has a five-year life with no salvage value. It is being depreciated at $200 per month for 60 months. (7) Invoices representing $1,000 of services performed during the month have not been recorded as of June 30.

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