Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2017. The trial balance at May 31 is as follows.

KRAUSE CONSULTING

Trial Balance

May 31, 2017

Account Number	Accounts	Debit	Credit
101	Cash	$ 4,500
112	Accounts Receivable	6,000
126	Supplies	1,900
130	Prepaid Insurance	3,600
149	Equipment	11,400
201	Accounts Payable		$ 4,500
209	Unearned Service Revenue		2,000
301	Owners Capital		18,700
400	Service Revenue		9,500
726	Salaries and Wages Expense	6,400
729	Rent Expense	900
		$34,700	$34,700

In addition to those accounts listed on the trial balance, the chart of accounts for Krause 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:

$900 of supplies have been used during the month.

Utilities expense incurred but not paid on May 31, 2017, $250.

The insurance policy is for 2 years.

$400 of the balance in the unearned service revenue account remains unearned at the end of the month.

May 31 is a Wednesday, and employees are paid on Fridays. Krause Consulting has two employees, who are paid $920 each for a 5-day work week.

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

Invoices representing $1,700 of services performed during the month have not been recorded as of May 31.

Instructions

1-Prepare the adjusting entries for the month of May. Use J4 as the page number for your journal.

2-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.

3-Prepare an adjusted trial balance at May 31, 2017.