ADJUSTING THE ACCOUNTS

Task #3

553 began a hotel consulting business, Sleep Well on May 1. Sleep Well's

account balances on May 31 are as follows:

Cash

Accounts Receivable

Prepaid Insurance

Supplies

Office Furniture

Accounts Payable

Unearned Service Revenue

Capital

Service Revenue

Salaries Expense

Rent Expense

$75.200

3.600

1.800

2,300

7.800

700

2.200

64.800

43 200

17.500

2.700

Based on the following additional information for Sleep Well:

a)

b)

C)

Prepare the adjusting journal entries for the month of May.

Post the adjusting entries to the ledger accounts.

Prepare an adjusted trial balance as of May 31.

Additional information:

1)

$500 of supplies have been used during the month.

2)

Travel expenses incurred but not paid total $200.

3)

The insurance policy covers 2 years

4)

$1,000 of the unearned revenue remains unearned.

5)

The office furniture is depreciated $2,400 per year over five years.

6)

Unbilled service to customers total $1,300 at the end of the month

7)

May 31 is a Wednesday, employees are paid on Fridays. Sleep

Well has two employees, who are paid $500 each for a 5-day work

STARA BAILE Name ADJUSTING THE ACCOUNTS us Task 3 began hotel comuhing businen, Sleep Wat on May I Sleep Wells account balances on May 31 are as follows: Cash Accounts Receivable Prepaid Insurance Supplies Orice Furniture Accounts Payable Uncared Service Revenue Capital Service Revenue Salaries Expense Rent Expense 575.200 3.600 1.800 2.300 7,800 700 2,200 64.800 43,200 17,500 2,700 Based on the following additional information for Sleep Well a) b) c) Prepare the adjusting journal entries for the month of May. Post the adjusting entries to the lodger accounts Prepare an adjusted trial balance as of May 31 Additional information 1) $500 of supplies have been used during the month. 2) Travel expenses incurred but not paid total $200 3) The insurance policy covers 2 years 4) $1,000 of the uncarned revenue remains uncared 5) The office furniture is depreciated $2,400 per year over five years. 6) Unbilled service to customers total $1,300 at the end of the month. 7) May 31 is a Wednesday, employees are paid on Fridays Sleep Well has two employees, who are paid $500 each for a 5-day work week ) Date MEN 30 General Journal Account Titlessplanation NOT required SURSS Red tebil Credit 31 75 DES 15 311 SM LE 31 UncoSo www SIC 31 DUBICE A Dolce - Fute 31 AGSAS RANSE NO 31 SNES EXES FANS sawa SUOO 3000 (b) DIS Cash Date US Explanation Rer Debit May 31 Balance Credit No. 100 Balance 75,200 Accounts Receivable Date May 31 Balance Explanation Rc Debit Credit No. 110 Balance 3.600 Prepaid Insurance Date May 31 Balance Explanation Ref Debit Credit No. 120 Balance 1.800 Supplies Date May 31 Balance Explanation Rec Debit Credit No. 130 Balance 2,300 Task 3 (Coord Office Furniture Date May 31 Balance Explanation Ref Debit Credit No. 1:35 Balance 7.00 Accumulated Depreciation - Office Furniture Date Explanation May 31 No. 136 Balance Rer Dehit Credit Accounts Payable Date Explanation Debit Credit No. 200 Balance 700 Ref May 31 Balance Travel Payable Date May 31 Explanation No. 210 Balance Ref: Debit Credit Salaries Payable Date Explanation Ref No. 220 Balance Debit Credit May 31 Unearned Revenue Date May 31 Balance Explanation Ref No. 230 Balance 9 Debit Credit 2,200 Capital Date May 31 Balance Explanation Ref Debit Credit No. 311 Balance 64,800 Service Revenue Date May 31 Balance Explanation Ref Debit Credit No. 400 Balance 43,200 I Task 3 (Cend) Salaries Expense Date May 31 Balance Ne STO Explanation Ref Det Cach Bale 17.500 Rent Expense Date May 31 Balance Explanation Debut Ref Crni No. 520 Balance 2.0 Depreciation Expense Date May 31 Explanation No, 500 Balance Ref. Debit Credit Insurance Expense Dale Explanation No. 540 Balance Ref Debit Credit May 31 ISITY OF WISCONSI Travel Expense Date May 31 No. 550 Balance Explanation Ref Debit Credit Supplies Expense No. 560 Balance Explanation Ror Debit Credit Date May 31 Task 3 Card e) SLEEPWELL Adjusted Trial Balance May 31, 2021 Debis Crot Cash Accounts Receivable Prepaid Insurance Supplies Office Furniture Accumulated Depreciation - Office Furniture Accounts Payable Travel Payable Salaries Payable Uncared Service Revenue Capital Service Revenue Salaries Expense Rent Expense Depreciation Expense Insurance Expense Travel Expense Supplies Expense ANISNOUSIV