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.

LUMAS CONSULTING
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
Lumas, Capital 22,000
Service Revenue 8,300
Salaries 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:
Insurance
Accumulated Depreciation—Equipment Salaries Payable
Expense
Utilities
Supplies Expense Depreciation Expense_equipment
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 servies were provided of the unearned service revenue at the end of the month.
5. Salaries of $1,250 are accrued at June 30.
per month for 60
6. The equipment has a 5-year life with no salvage value and is being depreciated at $250
months.
7. Invoices representing $3,900 of services performed during the month have not been recorded as of June 30.
 Instructions:
(a) Prepare the adjusting entries for the month of June.
06.30.14 Supplies Expense 1,280
Supplies 1,280
$2,000 - $720

30 Utilities Expense 180

Utilities Payable 180

30 Insurance Expense 240

Prepaid Insurance 240
$2,880 ÷ 12 months

30 Unearned Service Revenue 4,100

Service Revenue 4,100

30 Salaries Expense 1,250

Salaries Payable 1,250

30 Depreciation Expense_equipment 250

Accumulated Depreciation—Equipment 250

30 Accounts Receivable 3,900

Service Revenue 3,900

(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.

Cash Accounts Receivable

06.30.14 6,850 06.30.14 7,000
Balance 6/30/14 6,850 01.30.00 3,900
Balance
10,900
6/30/14
 Prepaid Insurance Supplies
06.30.14 2,880 01.30.00 240 06.30.14 2,000 06.30.14 1,280
Balance
Balance 6/30/14 2,640 720
6/30/14

Equipment Accumulated Depreciation—Equipment

Balance 6/30/14 15,000 06.30.14 250
Balance
250
6/30/14

Accounts Payable Salaries Payable

Balance 6/30/14 4,230 01.30.00 1,250
Balance
1,250
6/30/14
Balance 6/30/14 4,230

Utilities Payable
180
0
Balance 6/30/14 180

Unearned Service Revenue Lumas, Capital

Balance
01.30.00 4,100 06.30.14 5,200 22,000
6/30/14
Balance 6/30/14/14 1,100
 Service Revenue Salaries Expense
06.30.14 8,300 Balance 4,000
01.30.00 4,100 01.30.00 1,250
Balance
01.30.00 3,900 5,250
6/30/14
Balance 6/30/14 16,300

Rent Expense Depreciation Expense_equipment

Balance 6/30/14 2,000 01.30.00 250
Balance
250
6/30/14

Insurance Expense Utilities Expense

01.30.00 240 01.30.00 180
Balance
Balance 6/30/14 240 180
6/30/14

Supplies Expense
06.30.14 1,280
Balance 6/30/14 1,280
(c) Prepare an adjusted trial balance at June 30, 2014.

LUMAS CONSULTING
Adjusted Trial Balance
June 30, 2014
Debit Credit
Cash $6,850
Accounts Receivable 10,900
Prepaid Insurance 2,640
Supplies 720
Equipment 15,000
Accumulated Depreciation—Equipment $250
Accounts Payable 4,230
Salaries Payable 1,250
utilities Payable 180
Unearned Service Revenue 1,100
Lumas, Capital 22,000
Service Revenue 16,300
Salaries Expense 5,250
Rent Expense 2,000
Depreciation Expense_equipment 250
Insurance Expense 240
Utilities Expense 180
Supplies Expense 1,280
$45,310 $45,310
 LUMAS CONSULTING
Income Statement
For the Month Ended June 30, 2014
Revenues
Service Revenue 16,300

Expenses
Salaries Expense 5,250
Rent Expense 2,000
Depreciation Expense_equipment 250
Insurance Expense 240
Utilities Expense 180
Supplies Expense 1,280
Total Expenses 9,200

Net income 7,100

 LUMAS CONSULTING
Statement of Owner's Equity
the Month Ended June 30, 2014
Lumas, Capital June 1 2014 0
Owner contribution 22,000
Net income for the month 7,100

Lumas , Capital June 30, 2014 29,100

 LUMAS CONSULTING
Balance Sheet
Haziran 30, 2014
Assets
Cash 6,850
Accounts Receivable 10,900
Prepaid Insurance 2,640
Supplies 720
Equipment 15000
Accumulated Depreciation—
Equipment (250) 14,750

Total Assets 35,860

Liabilities and Owner's Equity

Liabilities

Accounts Payable 4,230

Salaries Payable 1,250
Utilities Payable 180
Unearned Service Revenue 1,100

Total Liabilities 6,760

Owner's Equity
Lumas, Capital 29,100

Total Liabilities and Owner's Equity 35,860