Jessica Naboo started her own consulting firm, Naboo Consulting, on May 1, 2007. The trial balance at May 31 is as shown on page 205

NABOO CONSULTING

Trial Balance

31-May-07

In addition to those accounts listed on the trial balance, the chart of accounts for Naboo Consulting also contains the following accounts: Accumulated Depreciation'Office Furniture, Travel Payable, Salaries Payable, Depreciation Expense, Insurance Expense, Travel Expense, and Supplies Expense.

Other data:
1. $500 of supplies have been used during the month.
2. Travel costs incurred but not paid are $260.
3. The insurance policy is for 2 years.
4. $1,000 of the balance in the Unearned Service Revenue account remains unearned at the end of the month.
5. May 31 is a Wednesday and employees are paid on Fridays. Naboo Consulting has two employees that are paid $600 each for a 5-day workweek.
6. The office furniture has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months.
7. Invoices representing $1,400 of services performed during the month have not been recorded as of May 31.

Instructions
1. Prepare the adjusting entries for the month of May.
2. Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.
3. Tot. Trial balance $36,680
Prepare an adjusted trial balance at May 31,2007.

Transcribed Image Text:

Debit Credit S7,500 3.000 3,600 2,500 12,000 Cash Accounts Receivable Prepaid Insurance Supplies Office Furniture Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries Expense Rent Expense S3,500 4.000 19,100 7,500 4.000 1.500 S34,100 S34,100