Calculations Shown

P4‑2A Gil Vogel started his own consulting firm, Vogel Consulting, on June 1, 2012. The trial balance at June 30 is as follows. Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance.(SO 4, 5, 6), AP VOGEL CONSULTING Trial Balance June 30, 2012

Debit Credit

Cash

$ 6,850Accounts Receivable

7,000Prepaid Insurance

2,880Supplies

2,000Equipment

15,000Accounts Payable

$4,230

Unearned Service Revenue

5,200

Common Stock

22,000

Service Revenue

8,300

Salaries and Wages Expense

4,000Rent Expense

2,000$39,730

$39,730

In addition to those accounts listed on the trial balance, the chart of accounts for Vogel also contains the following accounts: Accumulated Depreciation—Equipment, Utilities Payable, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: Supplies on hand at June 30 total $720.

A utility bill for $180 has not been recorded and will not be paid until next month.

The insurance policy is for a year.

$4,100 of unearned service revenue has been earned at the end of the month.

Salaries of $1,250 are accrued at June 30.

The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.

Invoices representing $3,900 of services performed during the month have not been recorded as of June 30.

Instructions Prepare the adjusting entries for the month of June.

Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.

Prepare an adjusted trial balance at June 30, 2012.(b) Service rev.

$16,300

(c) Tot. trial balance

$45,310

BE4-1)

Transactions that affect earnings do not necessarily affect cash. Identify the effect,

if any, that each of the following transactions would have upon cash and net income.

The first transaction has been completed as an example.

Net

Cash Income

(a) Purchased $100 of supplies for cash. _$100 $ 0

(b) Recorded an adjusting entry to record use of $20 of the above supplies.

(c) Made sales of $1,300, all on account.

(d) Received $800 from customers in payment of their accounts.

(e) Purchased equipment for cash, $2,500.

(f) Recorded depreciation of building for period used, $600.