Pamela Quinn started her own consulting firm, Quinn Consulting,on May 1, 2012. T
ID: 2352501 • Letter: P
Question
Pamela Quinn started her own consulting firm, Quinn Consulting,on May 1, 2012. The trial balance at May 31 is as shown on page205.Quinn CONSULTING
Trial Balance
May 31, 2012
Debit Credit
Cash$ 7,500
Accounts Receivable 3,000
Prepaid Insurance 3,600
Supplies 2,500
Equipment 12,000
Accounts Payable $ 3,500
Unearned Service Revenue 4,000
Common Stock 19,100
Service Revenue 7,500
Salaries and Wages Expense 4,000
Rent Expense 1,500
34,100 $34,100
In addition to those accounts listed on the trial balance, the chart of accounts for Quinn
Consulting also contains the following accounts: Accumulated Depreciation
Explanation / Answer
05/31/12
Supplies Expense
750
Supplies
750
05/31/12
Utilities Expense
260
Accounts Payable
260
05/31/12
Insurance Expense
150
Prepaid Insurance
150
($3,600 ÷ 24 months)
05/31/12
Unearned Service Revenue
2,500
Service Revenue
2,500
($4,000 - 1,500)
05/31/12
Salaries and Wages Expense
960
Salaries and Wages Payable
960
[(4 days / 5 days in a work week) × $600 each × 2 employees]
05/31/12
Depreciation Expense
200
Accumulated Depreciation—Equipment
200
05/31/12
Accounts Receivable
1,980
Service Revenue
1,980
=============================================
Cash
05/31/12 Balance
7,500
Prepaid Insurance
05/31/12 Balance
3,600
05/31/12
150
05/31/12 Balance
3,450
Equipment
05/31/12 Balance
12,000
Accounts Payable
05/31/12 Balance
3,500
05/31/12
260
05/31/12 Balance
3,760
Unearned Service Revenue
05/31/12
2,500
05/31/12 Balance
4,000
05/31/12 Balance
1,500
Service Revenue
05/31/12 Balance
7,500
05/31/12
2,500
05/31/12
1,980
05/31/12 Balance
11,980
Rent Expense
05/31/12 Balance
1,500
Insurance Expense
05/31/12
150
05/31/12 Balance
150
Supplies Expense
05/31/12
750
05/31/12 Balance
750
Accounts Receivable
05/31/12 Balance
3,000
05/31/12
1,980
05/31/12 Balance
4,980
Supplies
05/31/12 Balance
2,500
05/31/12
750
05/31/12 Balance
1,750
Accumulated Depreciation—Equipment
05/31/12
200
05/31/12 Balance
200
Salaries and Wages Payable
05/31/12
960
05/31/12 Balance
960
Common Stock
05/31/12 Balance
19,100
Salaries and Wages Expense
05/31/12 Balance
4,000
05/31/12
960
05/31/12 Balance
4,960
Depreciation Expense
05/31/12
200
05/31/12 Balance
200
Utilities Expense
05/31/12
260
05/31/12 Balance
260
======================
Adjusted Trial Balance
May 31, 2012
Debit
Credit
Cash
$7,500
Accounts Receivable
4,980
Prepaid Insurance
3,450
Supplies
1,750
Equipment
12,000
Accumulated Depreciation—Equipment
$200
Accounts Payable
3,760
Salaries and Wages Payable
960
Unearned Service Revenue
1,500
Common Stock
19,100
Service Revenue
11,980
Salaries and Wages Expense
4,960
Rent Expense
1,500
Depreciation Expense
200
Insurance Expense
150
Utilities Expense
260
Supplies Expense
750
$37,500
$37,500
05/31/12
Supplies Expense
750
Supplies
750
05/31/12
Utilities Expense
260
Accounts Payable
260
05/31/12
Insurance Expense
150
Prepaid Insurance
150
($3,600 ÷ 24 months)
05/31/12
Unearned Service Revenue
2,500
Service Revenue
2,500
($4,000 - 1,500)
05/31/12
Salaries and Wages Expense
960
Salaries and Wages Payable
960
[(4 days / 5 days in a work week) × $600 each × 2 employees]
05/31/12
Depreciation Expense
200
Accumulated Depreciation—Equipment
200
05/31/12
Accounts Receivable
1,980
Service Revenue
1,980
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