Prepare adjusting entries, post to ledger accounts, and prepare an adjusted trial balance.

P$3\mathrm{.}1($LO $2,3,4),$ AP Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May $1,2027.$ The unadjusted trial balance at

May $31$ is as follows.

Nardelli Consulting

Trial Balance

May $31,2027$

Account Number $$ 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 $$ $$2,200$

$209$ Unearned Service Revenue $2,000$

$311$ Common Stock $20,000$

$400$ Service Revenue $7,500$

$726$ Salaries and Wages Expense $3,400$

$729$ Rent Expense $900$

$$ $$31,700$ $$31,700$

In addition to those accounts listed on the trial balance, the chart of accounts for Nardelli Consulting also contains the following accounts and account numbers: No$.150$ Accumulated Depreciation$$Equipment$,$ 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 or recorded on May $31,2027,$ $$250.$

$-$An insurance policy for $2$ years was purchased on May $1.$

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

$-$The equipment 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

a$.$ Prepare the adjusting entries for the month of May. Use J$4$ as the page number for your journal.

b$.$ Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. Post the adjusting entries to the ledger accounts.

c$.$ Prepare an adjusted trial balance at May $31,2027.$

c$\mathrm{.}1$ Adj. trial balance $$34,920$