Pamela quinn started her own consulting firm, quinn consulting, on

P4-2B Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2012. The trial balance at May 31 is as shown below.;

QUINN CONSULTING

Trial Balance May 31, 2012;

Debit Credit Cash $ 7,500

 Accounts Receivable 3,000

Prepaid Insurance 3,600

Supplies 2,500

Equipment 12,000

Accounts Payable $ 3,500

 Unearned Service Revenue 4,000

Common Stock 19,100

Service Revenue 7,500

Salaries and Wages Expense 4,000

Rent Expense 1,500 $34,100 $34,100;

 

In addition to those accounts listed on the trial balance, the chart of accounts for Quinn Consulting also contains the following accounts:

Accumulated Depreciation?

Equipment,

Salaries and Wages Payable,

Depreciation Expense,

 Insurance Expense,

Utilities Expense, and Supplies Expense.

 

Other data:

1. $750 of supplies have been used during the month.

2. Utility costs incurred but not paid are $260.

3. The insurance policy is for 2 years.

4. $1,500 of the balance in the Unearned Service

Revenue account remains unearned at the end of the month.

5. Assume May 31 is a Thursday and employees are paid on Fridays.  Quinn Consulting has two employees that are paid $600 each for a 5-day work week.

6. The equipment has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months.

7. Invoices representing $1,980 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.

(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, 2012.;

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