Reference no: EM132785601

problem 1: New Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31, 2020, the following information was available for the preparation of the January 31, 2020, month-end adjusting entries:

1. Unrecorded and uncollected consulting revenue at month-end were $21,625.
2. One month of interest had accrued at the rate of 6% per year on a $111,250 note payable. 
3. A $15,750 insurance policy was purchased on April 1 of the current accounting period and debited to the Prepaid Insurance account. Coverage began April 1 for 18 months. 
4. The Prepaid Rent account showed a balance of $39,750. This was paid on January 1 of this accounting period and represents six months of rent commencing on the same date. 
5. Of the $34,750 balance in Unearned Consulting Revenue, $28,000 had been earned. 
6. The Store Supplies account had a balance of $263 at the beginning of January. During January, $508 of supplies were purchased and debited to the Store Supplies account. At month-end, a count of the supplies revealed a balance of $225. 
7. Equipment purchased on November 1 of this accounting period for $85,000 is estimated to have a useful life of eight years, with an estimated salvage value of $4,600. Assume Wondering Energy, uses Straight Line Method to depreciate the asset.