Question: Joey Cuono started his own consulting firm, Cuono Company, on June 1, 2014. The trial balance at June 30 is shown below.
CUONO COMPANY
Trial Balance
June 30, 2014
| Account |
|
|
|
|
|
|
| Number |
|
|
|
Debit |
|
Credit |
| 101 |
|
Cash |
|
$6,200 |
|
|
| 110 |
|
Accounts Receivable |
|
6,000 |
|
|
| 120 |
|
Prepaid Insurance |
|
3,000 |
|
|
| 130 |
|
Supplies |
|
2,000 |
|
|
| 135 |
|
Office Equipment |
|
14,400 |
|
|
| 200 |
|
Accounts Payable |
|
|
|
4,700 |
| 230 |
|
Unearned Service Revenue |
|
|
|
4,000 |
| 311 |
|
Common Stock |
|
|
|
20,000 |
| 400 |
|
Service Revenue |
|
|
|
7,900 |
| 510 |
|
Salaries Expense |
|
4,000 |
|
|
| 520 |
|
Rent Expense |
|
1,000 |
|
|
|
|
|
|
$36,600 |
|
$36,600 |
In addition to those accounts listed on the trial balance, the chart of accounts for Cuono Company also contains the following accounts and account numbers: No. 158
No. 136 Accumulated Depreciation - Office Equipment,
No. 210 Utilities Payable,
No. 220 Salaries Payable,
No. 530 Depreciation Expense,
No. 540 Insurance Expense,
No. 550 Utilities Expense, and
No. 560 Supplies Expense
Other data:
1) Supplies on hand at June 30 are $1,100.
2) A utility bill for $150 has not been recorded and will not be paid until next month.
3) The insurance policy is for a year.
4) $2,500 of unearned service revenue has been earned at the end of the month.
5) Salaries of $1,600 are accrued at June 30.
6) The equipment has a 5-year life with no salvage value. It is being depreciated at $300 per month for 48 months.
7). Invoices representing $2,100 of services performed during the month have not been recorded as of June 30.
a). Prepare the adjusting entries for the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
b). Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Post entries in the order of journal entries posted in the previous part of the question.)
c). Prepare an adjusted trial balance at June 30, 2014.