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Wipeout started his own consulting firm, Total Wipeout Consultancy, on July 1, 2018. The trial balance at September 30 is shown below.
Wipeout Consultancy
Trial Balance
September 30, 2018
| | Debit ($) | Credit ($) |
| Cash | 4,500 | |
| Accounts Receivable | 6,000 | |
| Supplies | 1,900 | |
| Prepaid Insurance | 3,600 | |
| Equipment | 11,400 | |
| Accounts Payable | | 4,500 |
| Unearned Service Revenue | | 2,000 |
| Owners Capital | | 17,700 |
| Service Revenue | | 7,500 |
| Salaries and Wages Expense | 3,400 | |
| Rent Expense | 900 | |
| Total | 31,700 | 31,700 |
Other Data:
1. $900 of supplies have been used during the quarter.
2. Utilities expense incurred but not paid on September 30, 2018, $250.
3. The insurance policy is for 2 years.
4. $400 of the balance in the unearned service revenue account remains unearned at the end of the quarter.
5. May 31 is a Wednesday, and employees are paid on Fridays. Wipeout Consulting has two employees, who are paid $900 each for a 5-day work week.
6. The office furniture has a 5-year life with no salvage value.
7. Invoices representing $1,700 of services performed during the quarter have not been recorded as of May 31.
Requirements:
Prepare adjusting journal entries [for 3 months] on September 30, 2018. [Show calculations if necessary]
Answer & Explanation
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