Ken Ham started his own consulting firm on April 1, 2008. The trial balance at April 31 is as follows.
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Hambone Consulting |
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Trial Balance |
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April 30, 2008 |
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Account |
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Number |
Debit |
Credit |
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Cash |
$5,700 |
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Accounts receivable |
$6,000 |
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Supplies |
$1,900 |
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Prepaid insurance |
$3,600 |
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Office furniture |
$10,200 |
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Account payable |
$4,500 |
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Unearned services revenue |
$2,000 |
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Capital |
$17,700 |
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Services revenue |
$7,500 |
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Salary expense |
$3,400 |
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Rent expense |
$900 |
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$31,700 |
$31,700 |
Other data:
- $900 of supplies have been use during the month.
- Travel expense incurred but not paid on April 31, 2008, $250.
- Insurance is for two years.
- $400 of the balance in the unearned service revenue account remains unearned at the end of the month.
- April 30, is a Wednesday and employees are paid on Friday. Hambone Consulting has two employees, who are paid $800 each for a five day work week.
- The office furniture has a 5 year life with no salvage value. It is being depreciated at $170 per month for 60 months.
- Invoices representing $1,200 of services performed during the month have not been recorded as of April 30.
Required:
- Prepare the adjusting entries for the month of April.
- Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning balance and
Prepare an adjusted trial balance at April 30, 2008.