Sharon Stone started her own consulting firm, Stone Consulting, on May 1, 2010. The
trial balance at May 31 is as follows.
May 31, 2010
Unearned Service Revenue
S. Stone, Capital
In addition to those accounts listed on the trial balance, the chart of accounts for Modine
Consulting also contains the following accounts and account numbers: No. 150 Accumulated
Depreciation—Office Furniture, No. 212 Salaries Payable, No. 229 Travel Payable, No. 631
Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Travel
$500 of supplies have been used during the month.
Travel expense incurred but not paid on May 31, 2010, $200.
The insurance policy is for 2 years.
$1,000 of the balance in the unearned service revenue account remains unearned at the end
of the month.
May 31 is a Wednesday, and employees are paid on Fridays. Stone Consulting has two em-
ployees, who are paid $700 each for a 5-day work week.
The office furniture has a 5-year life with no salvage value. It is being depreciated at $160 per
month for 60 months.
Invoices representing $1,000 of services performed during the month have not been recorded
as of May 31.
Prepare the adjusting entries for the month of May. Use J4 as the page number for your
Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as
beginning account balances and place a check mark in the posting reference column.
Prepare an adjusted trial balance at May 31, 2010.
Prepare adjusting entries, post
to ledger accounts, and prepare
an adjusted trial balance.
(SO 5, 6, 7)