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Naboo Consulting

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Instructions:
(a) Prepare the adjusting entries for the month of May.
(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.
(c) Prepare an adjusted trial balance at May 31, 2007.

Solution Preview

P4-2 B

Date Account Titles Debit Credit
2007
1 May-31 Supplies Expense &#8194; 500
Supplies &#8194; 500

2 31 Travel Expense &#8194; 260
Travel Payable &#8194; 260

3 31 Insurance Expense &#8194; 150 Insurance is for 24 months
Prepaid Insurance &#8194; 150 per month is 3,600/124 = 150

4 31 Unearned Service Revenue 3,000 Since 1,000 remains unearned, so \$3,000 is earned
Service Revenue 3,000

5 31 Salaries Expense &#8194; 720 Salaries for 3 days for 2 employees is 600/5X 3 X 2
Salaries Payable &#8194; ...

Solution Summary

The solution explains the adjusting entries and the adjusted trial balance for Naboo Consulting

\$2.19