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Problem 4-2A
Ken Lumas started his own consulting firm, Lumas Consulting, on June 1, 2014. The trial balance at June 30 is as follows.
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LUMAS CONSULTING
Trial Balance
June 30, 2014
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Debit
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Credit
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Cash
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$ 6,850
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Accounts Receivable
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7,000
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Supplies
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2,041
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Prepaid Insurance
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3,720
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Equipment
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15,000
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Accounts Payable
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$ 4,300
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Unearned Service Revenue
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5,200
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Common Stock
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22,131
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Service Revenue
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8,000
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Salaries and Wages Expense
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4,000
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Rent Expense
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1,020
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$39,631
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$39,631
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In addition to those accounts listed on the trial balance, the chart of accounts for Lumas also contains the following accounts: Accumulated Depreciation—Equipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.
Other data:
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1.
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Supplies on hand at June 30 total $720.
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2.
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A utility bill for $250 has not been recorded and will not be paid until next month.
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3.
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The insurance policy is for a year.
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4.
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Services were performed for $4,349 of unearned service revenue by the end of the month.
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5.
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Salaries of $1,334 are accrued at June 30.
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6.
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The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.
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7.
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Invoices representing $4,281 of services performed during the month have not been recorded as of June 30.
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