On July 31, 20X1, after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below ACCOUNTS AND BALANCES Cash $ 24,610 Dr Accounts Receivable 1,260 Dr Supplies 780 Dr Prepaid Rent 7,800 Dr Prepaid Insurance 1,140 Dr Prepaid Advertising 328 Dr Furniture 11,178 Dr Accumulated DepreciationFurniture Equipment 5,720 Dr Accumulated DepreciationEquipment Notes Payable 15,900 Cr Accounts Payable 3,700 Cr Interest Payable Unearned Accounting Fees 3,840 Cr Michael Domenici, Capital 26,076 Cr Michael Domenici, Drawing 1,200 Dr Accounting Fees 7,200 Cr Salaries Expense 2,400 Dr Utilities Expense 180 Dr Telephone Expense 120 Dr Supplies Expense Rent Expense Insurance Expense Advertising Expense Depreciation ExpenseFurniture Depreciation ExpenseEquipment Interest Expense ADJUSTMENTS On July 31, an inventory of the supplies showed that items costing $540 were on hand On July 1, the firm paid $7,800 in advance for six months of rent On July 1, the firm purchased a one year insurance policy for $1,140 On July 1, the firm paid $328 for four months of advertising The ads began running in July On July 1, the firm purchased office furniture for $11,178 The furniture is expected to have a useful life of seven years and a salvage value of $1,350 On July 1, the firm purchased office equipment for $5,720 The equipment is expected to have a useful life of five years and a salvage value of $1,400 On July 1, the firm issued a three month, 6 percent note for $6,200 On July 1, the firm received a consulting fee of $3,840 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 Jul 14, 2024

On July 31, 20X1, after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below.

ACCOUNTS AND BALANCES
Cash	$	24,610	Dr.
Accounts Receivable		1,260	Dr.
Supplies		780	Dr.
Prepaid Rent		7,800	Dr.
Prepaid Insurance		1,140	Dr.
Prepaid Advertising		328	Dr.
Furniture		11,178	Dr.
Accumulated DepreciationFurniture
Equipment		5,720	Dr.
Accumulated DepreciationEquipment
Notes Payable		15,900	Cr.
Accounts Payable		3,700	Cr.
Interest Payable
Unearned Accounting Fees		3,840	Cr.
Michael Domenici, Capital		26,076	Cr.
Michael Domenici, Drawing		1,200	Dr.
Accounting Fees		7,200	Cr.
Salaries Expense		2,400	Dr.
Utilities Expense		180	Dr.
Telephone Expense		120	Dr.
Supplies Expense
Rent Expense
Insurance Expense
Advertising Expense
Depreciation ExpenseFurniture
Depreciation ExpenseEquipment
Interest Expense

ADJUSTMENTS

On July 31, an inventory of the supplies showed that items costing $540 were on hand.
On July 1, the firm paid $7,800 in advance for six months of rent.
On July 1, the firm purchased a one-year insurance policy for $1,140.
On July 1, the firm paid $328 for four months of advertising. The ads began running in July.
On July 1, the firm purchased office furniture for $11,178. The furniture is expected to have a useful life of seven years and a salvage value of $1,350.
On July 1, the firm purchased office equipment for $5,720. The equipment is expected to have a useful life of five years and a salvage value of $1,400.
On July 1, the firm issued a three-month, 6 percent note for $6,200.
On July 1, the firm received a consulting fee of $3,840 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?