Question 1

Please do this using Journal Entries, Ledgers, Trial Balance, Income Statement, and Balance Sheet in Excel.

Hometown Consulting is a small agency. Its trial balance as at May 31, 2021 is as follows:

Hometown Consulting

Trial Balance

May 31, 2021

Debit Credit

Cash $ 6,800

Accounts Receivable 3,000

Prepaid Insurance 3,600

Supplies 1,500

Office Furniture 12,000

Accounts Payable $ 3,500

Unearned Service Revenue 4,000

Common Stock 19,400

Service Revenue 5,000

Salaries Expense 4,000

Rent Expense 1,000

$ 31,900 31,900

Aside from the accounts shown, the following will also be needed:

Accumulated Depreciation Office Furniture

Travel Payable

Salaries Payable

Depreciation Expense

Insurance Expense

Travel Expense

Supplies Expense

The following needs to be entered:

1. $500 of Supplies were used during the month
2. Travel costs incurred but not paid were $200
3. The insurance policy is paid for three years
4. Only $1,000 of the Unearned Service Revenue was still Unearned by the end of the month
5. May 31 is a Wednesday, and employees are paid on Friday (5 day week). There are 2 employees, each earning $600 per week.
6. The office furniture is being depreciated straight line over 5 years at $200 per month.
7. There are still $2,000 of services to be booked at the end of the month.

Instructions:

1. Prepare T-Accounts for the above
2. Make journal entries for the end of the month
3. Re-do the trial balance
4. Prepare a closing journal entry
5. Prepare an income statement and balance sheet