Waegelein consulting solution in excel

Nick Waege started his own consulting firm, Waegelein Consulting, on June 1, 2010. The trial balance at June 30 is as follows.

WAEGELEIN CONSULTING

Trial Balance

June 30, 2010

Debit Credit

Cash 6,850

Accounts Receivable 7,000

Prepaid Insurance 2,640

Supplies 2,000

Office Equipment 15,000

Accounts Payable 4,540

Unearned Service Revenue 5,200

Common Stock 21,750

Service Revenue 8,000

Salaries Expense 4,000

Rent Expense 2,000

39,490 39,490

In addition to those accounts listed on the trial balance, the chart of accounts for Waegelein also contains the following accounts:

Accumulated Depreciation - Office Equipment, Utilities Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Utilities Expense, Supplies Expense

Other data:

1 Supplies on hand at June 30 total $980.

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. $3,900 of unearned service revenue has been earned at the end of the month.

5. Salaries of $1,250 are accrued at June 30.

6. The office equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.

7. Invoices representing $3,500 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.

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

c. Prepare an adjusted trial balance at June 30, 2010.

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