The following is an unadjusted trial balance for Freedom Consulting Inc. On 30th June, 2021.

$(Debit) $(Credit)

Cash 6,320

Accounts Receivable 14,600

Supplies on hand 800

Prepaid rent 4,800

Furniture and Fixtures 18,000

Accumulated depreciation 5,625

Accounts Payable 5,200

Capital stock 10,000

Retained earnings 17,955

Consulting revenue 12,340

Utilities expense 4,100

Wage and Salary expense 2,500

Totals 51,120 51,120

During the month of June, the following transactions occurred and have not been accounted for in the trial balance above.

(i) Wages and salaries earned by employees at the end of June but not yet paid is$2,380.

(ii) Supplies on hand at the end of June is$550.

(iii) Depreciation on furniture and fixtures for June is $375.

(iv) Freedom Consulting prepays rent for its office space on June 1 of each year. 

The rent is $400 per month.(v)Consulting services rendered and billed(invoiced) for which cash has not yet been received is $4,600.Read the instructions for this question on your Inspera screen. The details to this question, relating to Freedom Consulting Inc., is attached in the PDF document. Please open the PDF document and read it carefully. This question is worth 40 points.

Required (follow the instructions below and write in your own words):

(a) For each of the five transactions for June (items (i )to (v)), write in the space below the journal entries. (Just write what account to debit and credit and their amounts. You do not need to write the description for the journal entry). (10 points)

(b) In the space below, prepare the Balance Sheet for Freedom Consulting Inc. on 30th June 2021. Classify your accounts with the necessary headings for full points. Both formats of the Balance Sheet which you have learned in the course is acceptable. (30 points)

Answer rating: 100% (QA)

a Adjusting journal Wages and salary expense ale Dr 2380 To wages and Salary payable Unpaid Salaries ... View the full answer