Question
Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2017. The trial balance at May 31 is as follows. NARDELLI CONSULTING Trial
Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2017. The trial balance at May 31 is as follows.
NARDELLI CONSULTING Trial Balance May 31, 2017
Account Number Debit Credit 101
Cash $ 4,700 112
Accounts Receivable 5,800 126
Supplies 2,100 130
Prepaid Insurance 4,800 149
Equipment 10,800 201
Accounts Payable $ 4,200 209
Unearned Service Revenue 2,000 311
Common Stock 18,500 400
Service Revenue 8,100 726
Salaries and Wages Expense 3,300 729
Rent Expense 1,300 $32,800 $32,800
In addition to those accounts listed on the trial balance, the chart of accounts for Nardelli Consulting also contains the following accounts and account numbers: No. 150 Accumulated DepreciationEquipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data:
1. $1,000 of supplies have been used during the month.
2. Utilities expense incurred but not paid on May 31, 2017, $300.
3. The insurance policy is for 2 years.
4. $400 of the balance in the unearned service revenue account remains unearned at the end of the month.
5. May 31 is a Wednesday, and employees are paid on Fridays. Nardelli Consulting has two employees, who are paid $800 each for a 5-day work week.
6. The equipment has a 5-year life with no salvage value. It is being depreciated at $180 per month for 60 months.
7. Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.
Enter the totals from the trial balance as beginning account balances. Post the adjusting entries to the ledger accounts.
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