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Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. Th

ID: 2469191 • Letter: K

Question

Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial balance at June 30 is as follows.

1,680

  

$39,579

$39,579


In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also contains the following accounts: Accumulated Depreciation—Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.

Other data:

LUMAS CONSULTING
Trial Balance
June 30, 2014
Debit Credit Cash $ 6,850 Accounts Receivable 7,000 Supplies 2,049 Prepaid Insurance 3,000 Equipment 15,000 Accounts Payable $ 4,240 Unearned Service Revenue 5,200 Common Stock 22,139 Service Revenue 8,000 Salaries and Wages Expense 4,000 Rent Expense

1,680

  

$39,579

$39,579

Explanation / Answer

LUMAS CONSULTING

June. 30, 2014

Unadjusted Trial Balance

Adjusting Entries

Adjusted Trial Balance

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$ 6,850.00

$ 6,850.00

Accounts Receivable

$ 7,000.00

$ 4,119.00

$11,119.00

Supplies

$ 2,049.00

$    1,239.00

$     810.00

(2049-810)

Prepaid Insurance

$ 3,000.00

$       250.00

$ 2,750.00

(3000*1/12)

Equipment

$15,000.00

$15,000.00

Accounts Payable

$ 4,240.00

$       277.00

$ 4,517.00

Unearned Service Revenue

$ 5,200.00

$ 4,142.00

$ 1,058.00

Common Stock

$22,139.00

$22,139.00

Service Revenue

$ 8,000.00

$    8,261.00

$16,261.00

(4142+4119)

Salaries and Wages Expense

$ 4,000.00

$ 1,407.00

$ 5,407.00

Rent Expense

$ 1,680.00

   

$ 1,680.00

Supplies Expenses

$ 1,239.00

$ 1,239.00

(2049-810)

Utilities Expenses

$     277.00

$     277.00

Insurance Expenses

$     250.00

$     250.00

(3000*1/12)

Salaries and Wages Payable

$    1,407.00

$ 1,407.00

Depreciation Expense

$     250.00

$     250.00

Accumulated Depreciation—Equipment

$       250.00

$     250.00

Total

$39,579.00

$39,579.00

$ 11,684.00

$ 11,684.00

$45,632.00

$45,632.00

LUMAS CONSULTING

June. 30, 2014

Unadjusted Trial Balance

Adjusting Entries

Adjusted Trial Balance

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$ 6,850.00

$ 6,850.00

Accounts Receivable

$ 7,000.00

$ 4,119.00

$11,119.00

Supplies

$ 2,049.00

$    1,239.00

$     810.00

(2049-810)

Prepaid Insurance

$ 3,000.00

$       250.00

$ 2,750.00

(3000*1/12)

Equipment

$15,000.00

$15,000.00

Accounts Payable

$ 4,240.00

$       277.00

$ 4,517.00

Unearned Service Revenue

$ 5,200.00

$ 4,142.00

$ 1,058.00

Common Stock

$22,139.00

$22,139.00

Service Revenue

$ 8,000.00

$    8,261.00

$16,261.00

(4142+4119)

Salaries and Wages Expense

$ 4,000.00

$ 1,407.00

$ 5,407.00

Rent Expense

$ 1,680.00

   

$ 1,680.00

Supplies Expenses

$ 1,239.00

$ 1,239.00

(2049-810)

Utilities Expenses

$     277.00

$     277.00

Insurance Expenses

$     250.00

$     250.00

(3000*1/12)

Salaries and Wages Payable

$    1,407.00

$ 1,407.00

Depreciation Expense

$     250.00

$     250.00

Accumulated Depreciation—Equipment

$       250.00

$     250.00

Total

$39,579.00

$39,579.00

$ 11,684.00

$ 11,684.00

$45,632.00

$45,632.00