Adjusting the Accounts

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Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2019. The trial balance at May 31 is as follows.
Krause Consulting
Trial Balance
May 31, 2019
In addition to dose accounts listed on the trial balance, the chart of accounts for Krause 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

  1. $900 of supplies have been used during the month.
  2. Utilities expense incurred but not paid on May 31, 2019, $250.
  3. The insurance policy is for 2 years.
  4. $400 of the balance in the unearned service revenue account remains unearned at the end of the month.
  5. May 31 is a Wednesday, and employees are paid on Friday, Krause Consulting has two employees, who are paid $920 each for a 5-day work week.
  6. The office furniture has a 5-year life with no salvage value. It is being depreciated at $190 per month for 60 months.
  7. 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, 2019

Mac's Motel opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows.
MAC'S MOTEL
Trial Balance
May 31, 2019
In addition to those accounts listed on the trial balance, the chart of accounts for Mac's Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable,No. 230 Interest Payable, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data

  1. Prepaid insurance is a 1-year policy starting May 1, 2019.
  2. A count of supplies shows $750 of unused supplies on May 31.
  3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment.
  4. The mortgage interest rate is 12%. (the mortgage was taken ot on May 1.)
  5. Two-thirds of the unearned rent revenue has been earned.
  6. Salaries of $750 are accrued and unpaid at May 31.

Instructions

  1. Prepare the adjusting entries on May 31.
  2. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusted entries. (Use J1 as the posting reference.)
  3. Prepare an adjusted trial balance at May 31, 2019
  4. Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31.

Problems: Adjusting the Accounts

Problem-1: Adjusting the Accounts

Logan Krause started her own consulting firm, Krause Consulting, on May 1, 2019. The trial balance at May 31 is as follows. Krause ConsultingTrial BalanceMay 31, 2019 In addition to...

Problem-2: Adjusting the Accounts

Mac's Motel opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. MAC'S MOTELTrial BalanceMay 31, 2019 In addition to those accounts...

Problem-3: Adjusting the Accounts

Alena Co. was organized on July 1, 2019. quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown bellow ALENA CO.Trial BalanceSeptember 30,...

Problem-4: Adjusting the Accounts

A review of the ledger of Remina Company at December 31, 2019, produces the following data pertaining to the preparation of annual adjusting entries.

Problem-5: Adjusting the Accounts

On Nobember 1, 2019, the account balances of Hamm Equipment Repair were as follows

Problem-6: Adjusting the Accounts

Johnson Graphics Company was organized on January 1, 2019, by Cameron Johnson. At the end of the first 6 months of operations, the trial balance contained the accounts shown as...

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