Fran Omiyale started her own consulting firm, Omiyale Consulting, on May 1, 2012. The trial balance at May 31 is as follows.

Moiyale consulting

trail balance

may 30,2012

account number debit credit

101 cash 4500

112 A/R 6000

126 supplies 1900

130 insurance expense 3600

149 equipment 11400

201 account payable 4500

209 unearned service revenues 2000

301 owners capital 17700

400 service revenue 7500

726 salaries and wage expense 3400

729 rent expense 900

31,700 31700

In addition to those accounts listed on the trial balance, the chart of accounts for Omiyale 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. 736 Utilities Expense.

Other data:

1. $900 of supplies have been used during the month.

2. Utilities expense incurred but not paid on May 31, 2012, $250.

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. Omiyale Consulting has two employees, who are paid $900 each for a 5-day work week.

6. The offce furniture has a 5-year life with no salvage value. It is being depreciated at $190 per month for 60 months.

7. Invoices representing $1,700 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 balances and place a check mark in the posting reference column.

(c) Prepare an adjusted trial balance at May 31, 2012.