Krause Consulting

Adjusting Journals
31-May-17

Date Accounts Ref. Debit Credit

31-May Supplies Expense 900
Supplies 900
[Supplies used]

31-May Utilities Expense 250

Utilities Payable 250
[Utilities expense incurred but unpaid]

31-May Insurance Expense 150

Prepaid Insurance 150
[One month's insurance expired]

31-May Unearned Service Revenue 1600

Service Revenue 1600
[Unearned service revenue in earned]

31-May Salaries and Wages Expense 1104

Salaries and Wages Payable 1104
[Three days expense incurred but unpaid]

31-May Depreciation Expense 190

Accumulated Deprn - Equipment 190
[One month's depreciation for equipment]

31-May Accounts Receivable 1700

Service Revenue 1700
[Services provided but was not recorded]
Total 5894 5894

Adjusted Trial Balance

Accounts Debit Credit
Cash 4500
Accounts Receivable 7700
Supplies 1000
Prepaid Insurance 3450
Equipment 11400
 Accounts Payable 4500
Unearned Service Revenue 400
Owner's Capital 18700
Service Revenue 12800
Salaries and Wages Expense 7504
Rent Expense 900
Supplies Expense 900
Utilities Expense 250
Utilities Payable 250
Insurance Expense 150
Salaries and Wages Payable 1104
Depreciation Expense 190
Acc. Deprn. - Equipment 190
Total 37944 37944

Balance Sheet
Assets
Cash 4500
Accounts Receivable 7700
Supplies 1000
Prepaid Insurance 3450
Equipment 11400
Less: Acc. Deprn - Equipment -190 11210
 Ledgers
Supplies Expense Depreciation Expense
Debit Credit Debit Credit
31-May 900 31-May 190
Balance 900 Balance 190

Supplies Acc. Deprn - Equipment

Debit Credit Debit Credit
1900 900 31-May 190 31-May
Balance 1000 190 Balance

Utilities Expense Accounts Receivable

Debit Credit Debit Credit
31-May 250 6000
Balance 250 31-May 1700
Balance 7700
Utilities Payable
Debit Credit
250 31-May
250 Balance

Insurance Expense
Debit Credit
31-May 150
Balance 150

Prepaid Insurance
Debit Credit
3600 150 31-May
Balance 3450

Unearned Service Revenue

Debit Credit
31-May 1600 2000
400 Balance

Service Revenue
Debit Credit
9500
1600 31-May
 1700 31-May
12800 Balance

Salaries and Wages Expense

Debit Credit
6400
31-May 1104
Balance 7504

Salaries and Wages Payable

Debit Credit
1104 31-May
1104 Balance
 1 Rent Revenue 90,000
Less: Advanced Rentals -15000
Actual Revenue 75,000 Less:

2 Supplies Expense 4500

3 Insurance Expense 1800

4 Old Advertising 5200

Add: March expenses 110
New Advertising 5310

Mainetance and Repairs 4000

Add March expenses 260
New Mainteance and Repairs 4260

Old Utilities 900

Add: March Expenses 180
New Utilities 1080

5 Old salaries and wages 29800

Add: Unpaid salaries 600
New Salaries and Wages 30400

6 Interest Expense 300

Corrected Income Statement

Revenue 75,000
Expenses
Advertising 5310
Salaries and Wages 30400
Utilities 1080
Depreciation 800
Maintenance and repairs 4260
Supplies Expense 4500
Insurance Expense 1800
Interest Expense 300
Total Expenses -48450
Profit 26,550