Hipster Optical
Trial Balance
May 31, 2017 |
| Acct.No | Account Title | | Debit | | | Credit | |
| 101 | Cash | $ | 17,700 | | | | |
| 106 | Accounts receivable | | 7,680 | | | | |
| 124 | Office supplies | | 5,600 | | | | |
| 128 | Prepaid insurance | | 9,020 | | | | |
| 163 | Office equipment | | 24,800 | | | | |
| 201 | Accounts payable | | | | $ | 1,520 | |
| 230 | Unearned service revenue | | | | | 7,000 | |
| 301 | Peeta Black, capital | | | | | 55,500 | |
| 302 | Peeta Black, withdrawals | | 1,400 | | | | |
| 403 | Services revenue | | | | | 21,200 | |
| 623 | Wages expense | | 14,200 | | | | |
| 640 | Rent expense | | 3,500 | | | | |
| 690 | Utilities expense | | 1,320 | | | | |
| | | | | | | |
| Totals | $ | 85,220 | | $ | 85,220 | |
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Required:
Using the trial balance provided above, prepare an income statementand statement of changes in equity for the first month ended May31, 2017, and a balance sheet at May 31, 2017.
Analysis Component:
Upon review of the trial balance, the balance at May 31, 2017 forutilities expense is $1,320. Create a journal entry that might havecreated this balance. Create a second entry when the May utilitybill is to be paid in the next month. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)
The balance in the utilities expense account could have arisen onaccount of one of the following entries.
