Tiffany Goren started her own consulting firm, Goren Consulting, on May 1, 2010. The trial balance at May 31 is as shown below.

In addition to those accounts listed on the trial balance, the chart of accounts for Goren 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 3 years.
4. $1,500 of the balance in the Unearned Service Revenue account remains unearned at the end of the month.
5. Assume May 31 is a Wednesday and employees are paid on Fridays. Goren Consulting has two employees that are paid $600 each for a 5-day work week.
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 $2,400 of services performed during the month have not been recorded as of May 31.

Instructions
(a) Prepare the adjusting entries for the month of May.
(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.
(c) Prepare an adjusted trial balance at May 31,2010.

Transcribed Image Text:

GOREN CONSULTING Trial Balance May 31, 2010 Debit Credit 7,500 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 3,500 4,000 19,100 7,500 4,000 1,500 34,100 $34, 100