Hipster Optical Trial Balance May 31, 2017

Acct. No	Account Title		Debit			Credit
101	Cash	$	17,700
106	Accounts receivable		7,680
124	Office supplies		5,600
128	Prepaid insurance		9,020
163	Office equipment		24,800
201	Accounts payable				$	1,520
230	Unearned service revenue					7,000
301	Peeta Black, capital					55,500
302	Peeta Black, withdrawals		1,400
403	Services revenue					21,200
623	Wages expense		14,200
640	Rent expense		3,500
690	Utilities expense		1,320
	Totals	$	85,220		$	85,220

Required: Using the trial balance provided above, prepare an income statement and statement of changes in equity for the first month ended May 31, 2017, and a balance sheet at May 31, 2017.

Analysis Component: Upon review of the trial balance, the balance at May 31, 2017 for utilities expense is $1,320. Create a journal entry that might have created this balance. Create a second entry when the May utility bill is to be paid in the next month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The balance in the utilities expense account could have arisen on account of one of the following entries.