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Problem 4-2A
Print by: MOHAMMAD JUMAH
Doron-Spring 2014-Fri 11am / Chapter 4 Textbook Assignments
*Problem 4-2A
Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial
balance at June 30 is as follows.
LUMAS CONSULTING
Trial Balance
June 30, 2014
Debit
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Unearned Service Revenue
Common Stock
Service Revenue
Salaries and Wages Expense
Rent Expense
Credit
$ 6,850
7,000
2,051
3,240
15,000
$ 4,260
5,200
22,141
8,000
4,000
1,460
$39,601
$39,601
In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also
contains the following accounts: Accumulated Depreciation—Equipment, Salaries and Wages
Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.
Other data:
1.
2.
3.
4.
5.
Supplies on hand at June 30 total $730.
A utility bill for $221 has not been recorded and will not be paid until next month.
The insurance policy is for a year.
Services were performed for $4,258 of unearned service revenue by the end of the month.
Salaries of $1,312 are accrued at June 30.
The equipment has a 5-year life with no salvage value and is being depreciated at $250 per
6.
month for 60 months.
Invoices representing $3,950 of services performed during the month have not been
7.
recorded as of June 30.
Your answer is partially correct. Try again.
Prepare the adjusting entries for the month of June. (Credit account titles are autom atically
indented when the am ount is entered. Do not indent m anually.)
No. Account Titles and Explanation
1.
Supplies Expense
Debit
Credit
730
Supplies
2.
Utilities Expense
730
221
Accounts Payable
3.
Insurance Expense
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221
270
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Problem 4-2A
Prepaid Insurance
4.
270
Unearned Service Revenue
4,258
Service Revenue
5.
4,258
Salaries and Wages Expense
1,312
Salaries and Wages Payable
6.
1,312
Depreciation Expense
250
Accumulated Depreciation-Equipment
7.
250
Accounts Receivable
3,950
Service Revenue
3,950
Your answer is partially correct. Try again.
Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as
beginning account balances. (Use T-accounts.) (Post entries in the order of journal entries
presented in the prev ious question.)
Cash
6,850
6/1
Accounts Receivable
6/1
7,000
6/30
3,950
6/30 Bal.
10,950
Equipment
15,000
6/1
Accumulated Depreciation-Equipment
6/30
250
6/30 Bal.
250
Accounts Payable
4,260
6/1
6/30
221
6/30 Bal.
4,481
Salaries and Wages Payable
6/30
1,312
6/30 Bal.
1,312
Unearned Service Revenue
6/30
4,258 6/1
6/30
5,200
972
Common Stock
6/1
22,141
Service Revenue
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Problem 4-2A
6/1
8,000
6/30
4,258
6/30
3,950
16,208
Prepaid Insurance
6/1
3,240 6/30
6/30 Bal.
2,970
270
Supplies
2,051 6/30
6/1
6/30
730
1,321
Salaries and Wages Expense
6/1
4,000
6/30
1,312
6/30 Bal.
5312
Rent Expense
1,460
6/1
Depreciation Expense
6/30
250
6/30 Bal.
250
Insurance Expense
6/30
270
6/30 Bal.
270
Utilities Expense
6/30
221
6/30 Bal.
221
Supplies Expense
6/30
730
6/30 Bal.
730
Your answer is partially correct. Try again.
Prepare an adjusted trial balance at June 30, 2014.
LUMAS CONSULTING
Adjusted Trial Balance
June 30, 2014
Debit
Cash
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Credit
$ 6,850
$
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Problem 4-2A
Accounts Receivable
10,950
Equipment
15,000
Accumulated Depreciation-Equipment
250
Accounts Payable
4,481
Salaries and Wages Payable
1,312
Unearned Service Revenue
940
Common Stock
22,141
Service Revenue
16,208
Prepaid Insurance
Supplies
2,970
1,321
Salaries and Wages Expense
5,312
Rent Expense
1,460
Depreciation Expense
250
Insurance Expense
270
Utilities Expense
221
Supplies Expense
730
$ 45,334
$ 45,334
Question Attempts: 1 of 3 used
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