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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