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Adjusting Entries, Post T-accounts, Adjusted trial balance

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Josh Stein started his own consulting firm, Astromech Consulting, on June 1, 2007. The trial balance at June 30 is as follows.

ASTROMECH CONSULTING
Trial Balance
June 30, 2007
Debit Credit
Cash $6,850
Accounts Receivable 7,000
Prepaid Insurance 2,640
Supplies 2,000
Office Equipment 15,000
Accounts Payable $4,540
Unearned Service Revenue 5,200
Common Stock 21,750
Service Revenue 8,000
Salaries Expense 4,000
Rent Expense 2,000
$39,490 $39,490

In addition to those accounts listed on the trial balance, the chart of accounts for Astromech also contains the following accounts: Accumulated Depreciation—Office Equipment, Utilities Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.

Other data:
1. Supplies on hand at June 30 total - $980
2. A utility bill has not been recorded and will not be paid until next month - $180
3. The insurance policy is for a year.
4 $2,900 of unearned service revenue has been earned at the end of the month.
5. Salaries of $1,250 are accrued at June 30.
6. The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per
month for 60 months.
7. Invoices representing $3,000 of services performed during the month have not been recorded as of June 30.

Instructions:
(a) Prepare the adjusting entries for the month of June.
06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

06/30/07 Account title Amount
Account title Amount

(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.

Cash Accounts Receivable

Prepaid Insurance Supplies

Office Equipment Accum Depreciation - Office Equip

Accounts Payable Utilities Payable

Salaries Payable Unearned Service Revenue

Common Stock Service Revenue

Salaries Expense Rent Expense

Depreciation Expense Insurance Expense

Utilities Expense Supplies Expense

(c) Prepare an adjusted trial balance at June 30, 2007.

ASTROMECH CONSULTING
Adjusted Trial Balance
June 30, 2007
Debit Credit
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Account title
Formula Formula

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Josh Stein started his own consulting firm, Astromech Consulting, on June 1, 2007. The trial balance at June 30 is as follows.

ASTROMECH CONSULTING
Trial Balance
June 30, 2007
Debit Credit
Cash $6,850
Accounts Receivable 7,000
Prepaid Insurance 2,640
Supplies 2,000
Office Equipment 15,000
Accounts Payable $4,540
Unearned Service Revenue 5,200
Common Stock 21,750
Service Revenue 8,000
Salaries Expense 4,000
Rent Expense 2,000
$39,490 $39,490

In addition to those accounts listed on the trial balance, the chart of accounts for Astromech also contains the following accounts: Accumulated Depreciation—Office Equipment, Utilities Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.

Other data:
1. Supplies on hand at June 30 total - $980
2. A utility bill has not been recorded and will not be paid until next month - $180
3. The insurance policy is for a year.
4 $2,900 of unearned service revenue has been earned at the end of the month.
5. Salaries of $1,250 are accrued at June 30.
6. The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per
month for 60 ...

Solution Summary

This solution helps adjusting entries, post t-account and adjusted trial balance.

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