Question 2: (2.5 marks) LiL Company encouters the following situations: Lil Consulting Company Trial Balance 31...

 

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Question 2: (2.5 marks) LiL Company encouters the following situations: Lil Consulting Company Trial Balance 31 May, 2020 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts payable Mortgage. Payable Unearned Service Revenue Share Capital- Ordinary Service Revenue Salaries and wages expense Rent Expense Debit 7,050 6,150 3,500 4,500 11,400 6,400 2,900 41,900 Credit 4,300 20,000 2,200 9,800 5,600 41,900 1. S.... of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2020, $.... 3. The insurance policy is for 2 years. 4. $... 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. LiL Consulting has two employees, who are paid $.... each for a 5-day work week. 6. The office furniture has a 5-year life with no residual value. It is being depreciated at $190 per month for 60 months. 7. Invoices representing $....of services performed. During the month have not been recorded as of May 31. 8. Supplies remain unused on May 31 is $..... 9. The mortgage interest rate is 6% (the mortgage was taken out on May 1) Required: 1. Fill the dot (S...). and identify what type of adjusting entry for each transaction (prepaid expense, unearned revenue, accrued expense or accrued. Revenue) (0.5 marks) 2. Prepare the adjusting entries for the month of May (1.0 marks) 3. Prepare T- account. Enter the trial balance amounts and post the adjusting entries (0.5 marks) 4. Prepare an adjusted trial balance on May 31. (0.5 marks) Question 2: (2.5 marks) LiL Company encouters the following situations: Lil Consulting Company Trial Balance 31 May, 2020 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts payable Mortgage. Payable Unearned Service Revenue Share Capital- Ordinary Service Revenue Salaries and wages expense Rent Expense Debit 7,050 6,150 3,500 4,500 11,400 6,400 2,900 41,900 Credit 4,300 20,000 2,200 9,800 5,600 41,900 1. S.... of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2020, $.... 3. The insurance policy is for 2 years. 4. $... 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. LiL Consulting has two employees, who are paid $.... each for a 5-day work week. 6. The office furniture has a 5-year life with no residual value. It is being depreciated at $190 per month for 60 months. 7. Invoices representing $....of services performed. During the month have not been recorded as of May 31. 8. Supplies remain unused on May 31 is $..... 9. The mortgage interest rate is 6% (the mortgage was taken out on May 1) Required: 1. Fill the dot (S...). and identify what type of adjusting entry for each transaction (prepaid expense, unearned revenue, accrued expense or accrued. Revenue) (0.5 marks) 2. Prepare the adjusting entries for the month of May (1.0 marks) 3. Prepare T- account. Enter the trial balance amounts and post the adjusting entries (0.5 marks) 4. Prepare an adjusted trial balance on May 31. (0.5 marks)

Answer rating: 100% (QA)

No 1 2 3 5 6 Date Account titles and Explanation 31May Supplies expenses Supplies ... View the full answer