ADJUSTING THE ACCOUNTS Task # 3 Jon began a hotel consulting business, Sleep Well on May 1. Sleep Well's account balances on May 31 are as follows: Cash Accounts Receivable $75,260 3,800 Prepaid Insurance 3,240 Supplies 1,300 Office Furniture 14,400 Accounts Payable 400 Unearned Service Revenue 2,300 Capital 68,400 Service Revenue 45,600 Salaries Expense 17,500 Rent Expense 1,200 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) 4) 5) The insurance policy covers 2 years $1,000 of the unearned revenue remains unearned. The office furniture is depreciated $2,400 per year over five years. 6) Unbilled service to customers total $1,500 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. (a) Date May 31 General Journal Account Titles (Explanation NOT required) Ref. Debit Credit 31 (b) Cash Date 31 31 31 31 31 May 31 Balance Explanation Ref. Debit Credit No. 100 Balance 75,260 Accounts Receivable Date No. 110 Explanation Ref. Debit Credit Balance May 31 Balance 3,800 Prepaid Insurance No. 120 Date Explanation Ref. Debit Credit Balance May 31 Balance 3,240 Supplies No. 130 Date Explanation Ref. Debit Credit May 31 Balance Balance 1.300 Task #3 (Cont'd) Office Furniture Date Explanation May 31 Balance No. 135 Ref. Debit Credit Balance 14,400 Accumulated Depreciation - Office Furniture. Date Explanation No. 136 Ref. Debit Credit Balance May 31 Accounts Payable No. 200 Date Explanation Ref. Debit Credit Balance May 31 Balance 400 Travel Payable No. 210 Date Explanation Ref. Debit Credit Balance May 31 Salaries Payable Date Explanation Ref. Debit Credit No. 220 Balance May 31 Unearned Revenue No. 230 Date Explanation Ref. Debit Credit May 31 Balance Balance 2,300 Capital No. 311 Date Explanation Ref. Debit Credit Balance May 31 Balance 68,400 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance May 31 Balance 45,600 Task # 3 (Cont'd) Salaries Expense No. 510 Date Explanation Ref. Debit Credit Balance May 31 Balance 17,500 Rent Expense No. 520 Date Explanation Ref. Debit Credit Balance May 31 Balance 1,200 Depreciation Expense Date May 31 No. 530. Explanation Ref. Debit Credit Balance Insurance Expense No. 540 Date Explanation Ref. Debit Credit Balance May 31 Travel Expense No. 550 Date Explanation Ref. Debit Credit Balance May 31 Supplies Expense Date May 31 No. 560 Explanation Ref. Debit Credit Balance Task #3 (Cont'd) (c) SLEEP WELL Adjusted Trial Balance May 31, 2022 Cash Accounts Receivable Prepaid Insurance Supplies Office Furniture Accumulated Depreciation - Office Furniture Accounts Payable Travel Payable Salaries Payable Unearned Service Revenue Capital Service Revenue Salaries Expense Rent Expense Depreciation Expense Insurance Expense Travel Expense Supplies Expense Debit Credit