On July 31, 2019, after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below ACCOUNTS AND BALANCES Cash $ 25,460 Dr Accounts Receivable 1,430 Dr Supplies 950 Dr Prepaid Rent 10,350 Dr Prepaid Insurance 2,160 Dr Prepaid Interest 396 Dr Furniture 13,031 Dr Accumulated DepreciationFurniture Equipment 7,165 Dr Accumulated DepreciationEquipment Notes Payable 17,600 Cr Accounts Payable 5,400 Cr Interest Payable Unearned Consulting Fees 5,880 Cr Michael Domenici, Capital 30,632 Cr Michael Domenici, Drawing 2,900 Dr Consulting Fees 8,900 Cr Salaries Expense 4,100 Dr Utilities Expense 265 Dr Telephone Expense 205 Dr Supplies Expense Rent Expense Insurance Expense Depreciation ExpenseFurniture Depreciation ExpenseEquipment Interest Expense ADJUSTMENTS On July 31, an inventory of the supplies showed that items costing $625 were on hand On July 1, the firm paid $10,350 in advance for six months of rent On July 1, the firm purchased a one year insurance policy for $2,160 On July 1, the firm paid $396 interest in advance on a four month note that it issued to the bank On July 1, the firm purchased office furniture for $13,031 The furniture is expected to have a useful life of seven years and a salvage value of $1,775 On July 1, the firm purchased office equipment for $7,165 The equipment is expected to have a useful life of five years and a salvage value of $1,825 On July 1, the firm issued a three month, 8 percent note for $9,600 On July 1, the firm received a consulting fee of $5,880 in advance for a one year period Required Prepare a partial worksheet with the following sections Trial Balance, Adjustments, and Adjusted Trial Balance Use the data about the firms accounts and balances to complete the Trial Balance section Enter the adjustments described above in the Adjustments section Complete the Adjusted Trial Balance section Analyze By what total amount were the expense accounts of the business adjusted

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Posted on Sep 12, 2024

On July 31, 2019, after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below.

ACCOUNTS AND BALANCES
Cash	$	25,460	Dr.
Accounts Receivable		1,430	Dr.
Supplies		950	Dr.
Prepaid Rent		10,350	Dr.
Prepaid Insurance		2,160	Dr.
Prepaid Interest		396	Dr.
Furniture		13,031	Dr.
Accumulated DepreciationFurniture
Equipment		7,165	Dr.
Accumulated DepreciationEquipment
Notes Payable		17,600	Cr.
Accounts Payable		5,400	Cr.
Interest Payable
Unearned Consulting Fees		5,880	Cr.
Michael Domenici, Capital		30,632	Cr.
Michael Domenici, Drawing		2,900	Dr.
Consulting Fees		8,900	Cr.
Salaries Expense		4,100	Dr.
Utilities Expense		265	Dr.
Telephone Expense		205	Dr.
Supplies Expense
Rent Expense
Insurance Expense
Depreciation ExpenseFurniture
Depreciation ExpenseEquipment
Interest Expense

ADJUSTMENTS

On July 31, an inventory of the supplies showed that items costing $625 were on hand.
On July 1, the firm paid $10,350 in advance for six months of rent.
On July 1, the firm purchased a one-year insurance policy for $2,160.
On July 1, the firm paid $396 interest in advance on a four-month note that it issued to the bank.
On July 1, the firm purchased office furniture for $13,031. The furniture is expected to have a useful life of seven years and a salvage value of $1,775.
On July 1, the firm purchased office equipment for $7,165. The equipment is expected to have a useful life of five years and a salvage value of $1,825.
On July 1, the firm issued a three-month, 8 percent note for $9,600.
On July 1, the firm received a consulting fee of $5,880 in advance for a one-year period.

Required:

Prepare a partial worksheet with the following sections: Trial Balance, Adjustments, and Adjusted Trial Balance. Use the data about the firms accounts and balances to complete the Trial Balance section.
Enter the adjustments described above in the Adjustments section.
Complete the Adjusted Trial Balance section.

Analyze: By what total amount were the expense accounts of the business adjusted?