CHAPTER 3 PROBLEMS: SET C P3-10 Andrea Alom started her own consulting firm, Consulting, on May 1, 2017. The trial balance at May 31 is as follow Prepare adjusting entries, post onder accounts, and pre naste trial (LO 2,3,4) ALTOM CONSULTING Trial Balance May 31, 2017 Account Number Credit Debit $ 7,700 4.000 1,500 4.800 9.600 126 201 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Uneared Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Rent Expense $ 3.500 209 301 19.100 3.000 729 $31,600 $31,600 In addition to those accounts listed on the trial balance, the chart of accounts for Altom Consulting also contains the following accounts and account numbers: No. 150 Accumu lated Depreciation Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Utilities Expense Other data 1. $500 of supplies have been used during the month 2. Utilities expense incurred but not paid on May 31, 2017, $200. 3. The insurance policy is for 2 years 4. $1,000 of the balance in the unearted vice revenue account remains uneared at the end of the month 5. May 31 is a Wednesday, and employees are paid on Fridays. Altom Consulting has two employees, who are paid $700 each for a 5-day work week. 6. The equipment has a 5-year life with no salvage value. It is being depreciated at $160 per month for 60 months. 7. Invoices representing $1,000 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 balance and place a check mark in the posting reference con (c) Prepare an adjusted trial balance at May 31, 2017 Astral balance 533 500 2 3 Adjusting the Accounts P3-2 The Collison Motel opened for business on May 1, 2014. Tis trial balance before djustment on May 31 is as follows a Prepare a ng entries post and p trial balanes, and financial temos (LO 2. 3. 4) COLLISON MOTEL Tal Balance May 31, 2017 Number $ 101 126 Debit 2.500 1.900 2.400 15.000 70.000 16,800 Cash Supplies Prepaid Insua land Buildings Equipment Accounts Payable Unearned Rent Revenu Morge Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 201 208 275 $ 5,300 3.600 40,000 55,000 9,200 301 429 610 500 3.000 726 732 5113,100 $113,100 In addition to those accounts listed on the trial balance, the chart of accounts for Collison Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation Buildings, No. 150 Accumulated Depreciation Equipment No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense No. 631 Supplies Expeme, No. 718 Interest Expense, and No. 722 Insurance Expense Other data: 1. Insurance expires at the rate of $200 per month 2. A count of supplies shows 5300 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the buildings and 53,000 on equipment The more interest rate is 124. The more was taken out on May 1.) 5. One third of the unearned rent revenue has been cared. 6. Salaries of $800 are accrued and unpaid at May 31. 150 Instructions Journalire the adjusting entries on May 3. Prepare a le a sing the three column form of account Enter the trial balance amounts and post the adjusting entries. Lisell as the posting reference.) e) Prepare an adjusted trial balance on May 31 d) Prepare an income statement and an owner's equity statement for the month of May und a balance sheet at May 31 Ending