Ken Lumas started his own consulting firm Lumas Consulting on June 1 2014 The

Ken lumas started his own consulting firm lumas

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P4-2A, Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance.Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial balance at June 30 is as follows.LUMAS CONSULTINGTrial BalanceMay 31, 2017DebitCreditCash$6,850 Accounts Receivable7,000 Prepaid Insurance2,880 Supplies2,000 Equipment15,000 Accounts Payable$4,230 Unearned Service Revenue5,200 Common Stock22,000 Service Revenue8,300 Salaries and Wages Expense4,000 Rent Expense2,000 $39,730 $39,730 In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also contains the following accounts:Accumulated Depreciation—EquipmentSalaries and Wages PayableInsurance ExpenseSupplies Expense.Depreciation Expense,Utilities ExpenseOther data:1Supplies on hand at June 30 total$720 2A utility bill for$180 has not been recorded and will not be paid until next month.3The insurance policy is for a year.4$4,100 of unearned service revenue has been earned at the end of the month.5Salaries of$1,250 are accrued at June 30.6The equipment has a 5-year life with no salvage value and is being depreciated at$250 per month for 60 months.7Invoices representing$3,900 of services performed during the month have not been recorded as of June 30.Instructions:(a)Prepare the adjusting entries on May 31.05/31/17supplies expenses1,280supplies1,28005/31/17utilities expenses180Accounts Payable18005/31/17insurance expense240Prepaid Insurance24005/31/17Unearned Service Revenue4,100Service Revenue4,10005/31/17Salaries and Wages Expense1,250salaries and wages payable1,25005/31/17depreciation expense250accumulated depreciation- equipment25005/31/17Accounts Receivable3,900Service Revenue3,900ch04.xlsx, Page of Page(s), 9/24/181:41 PM18
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(b)Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.CashAccounts Receivabledatedebitdatecreditdatedebit datecredit6/30 balance6,850 06/30/187,000 Balance 6/30Prepaid InsuranceSuppliesBalance 6/30Balance 6/30Office Equipment
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