• Waegelein Consulting - Adjusting entries and trial balance

Waegelein Consulting - Adjusting entries and trial balance - 31 May, 2012

Nick Waege started his own consulting firm, Waegelein Consulting, on June 1, 2010. The trial balance at June 30 is as follows.                                          


WAEGELEIN CONSULTING                                           

Trial Balance                                     

June 30, 2010                                    


                        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 Waegelein also contains the following accounts:                                       


Accumulated Depreciation - Office Equipment, Utilities Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Utilities Expense, Supplies Expense                                              



Other data:                                        

1 Supplies on hand at June 30 total $980.                                        

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. $3,900 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 $3,500 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, 2010.                                              

Category : Financial Accounting

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Waegelein , Consulting , Adjusting , Journal , Entries , Adjusted , Trial , Balance , T-account 

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Answer  - 31 May, 2012
Please see the excel attachment....

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