Acc290 Financial Accounting: P4-2A Ken Lumas started his own consulting firm, Lumas Consulting

Acc290 Financial Accounting

P4-2A, Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance.
Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial balance at June 30 is as follows.
Trial Balance
June 30, 2014
Debit Credit
Cash 6,850
Accounts Receivable 7,000
Prepaid Insurance 2,880
Supplies 2,000
Equipment 15,000
Accounts Payable 4,230
Unearned Service Revenue 5,200
Common Stock 22,000
Service Revenue 8,300
Salaries and Wages Expense 4,000
Rent Expense 2,000
39,730 39,730

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, Insurance Expense, Supplies Expense. Depreciation Expense, Utilities Expense

Other data:
1. Supplies on hand at June 30 total $720
2. A utility bill for $180 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $4,100 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 equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.
7. Invoices representing $3,900 of services performed during the month have not been recorded as of June 30.

a. Prepare the adjusting entries for the month of June.
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 June 30, 2014.
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