Financial Accounting Adjustment Solution 1. Julie Brown started her own consulting firm, Wedding Consulting, on May 1, 2008. The trial balance at May 31 is as follows. Debit Credit In addition to those accounts listed on the trial balance, Cash $6,500 the chart of accounts for Wedding Consulting also Accounts Receivable 4,000 contains the following accounts and necount numbers: Prepaid Insurance 3,600 Accumulated Depreciation Office Furniture, Travel Payable Salaries Payable, Depreciation Expense, Supplies 1,500 Insurance Expense, Travel Expense, and Supplies Office Furniture 12,000 Expense Accounts Payable S 3,500 Other data: Uneared Service Revenue 3,000 1. $500 of supplies has been used during the month. Common Stock 19,100 2. Travel expense incurred but not paid on May 31, Service Revenue 6,000 2003, S200 Salaries Expense 3,000 3. The insurance policy is for 2 years. Rent Expense 4. $1,000 of the balance in the uncared service 1.000 $31,600 revenue account remains uneared at the end of $31,600 the month Instructions S. May 31 is a Wednesday, and employees are paid (a) Journalize the adjusting entries for the month of May. on Fridays. Wedding Consulting has two (b) Post the adjusting entries to the lodger or T-Accounts employees who are paid $500 each for a 5-day workweek (C) Prepare an adjusted trial balance at May 31, 2008. 6. The office furniture has a 5-year life with no salvage value. It is being depreciated at $200 per month for 60 months 7 Invoice representing $2,000 of services performed during the month have not been recorded as of May 31