Reference no: EM13555771

Ham started his own consulting firm, Hambone Consulting, on May 1, 2010. The trial balance at May 31 is as follows.

	HAMBONE CONSULTING Trial Balance May 31, 2010
Account
Number		Debit	Credit
101	Cash	$ 5,700
112	Accounts Receivable	6,000
126	Supplies	1,900
130	Prepaid Insurance	3,600
149	Office Furniture	10,200
201	Accounts Payable		$ 4,500
209	Unearned Service Revenue		2,000
301	K. Ham, Capital		17,700
400	Service Revenue		7,500
726	Salaries Expense	3,400
729	Rent Expense	900
		$31,700	$31,700

In addition to those accounts listed on the trial balance, the chart of accounts for Hambone Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation-Office Furniture, No. 212 Salaries Payable, No. 229 Travel Payable, No. 631Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Travel Expense.

Other data:

1. $900 of supplies have been used during the month.

2. Travel expense incurred but not paid on May 31, 2010, $250.

3. The insurance policy is for 2 years.

4. $400 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. Hambone Consulting has two employees, who are paid $800 each for a 5-day work week.

6. The office furniture has a 5-year life with no salvage value. It is being depreciated at $170 per month for 60 months.

7. Invoices representing $1,200 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. Use J4 as the page number for your journal.

(b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column.

(c) Prepare an adjusted trial balance at May 31, 2010.