Problem 3-1A

Tony Masasi started his own consulting firm, Masasi Company, on June 1, 2010. The trial balance at June 30 is as follows.

MASASI COMPANY
Trial Balance
June 30, 2010
Account Number			Debit		Credit
101		Cash	$7,150
112		Accounts Receivable	6,000
126		Prepaid Insurance	3,000
130		Supplies	2,000
157		Office Equipment	15,000
201		Accounts Payable			$4,500
209		Unearned Service Revenue			4,000
301		J. Masasi, Capital			21,750
400		Service Revenue			7,900
726		Salaries Expense	4,000
729		Rent Expense	1,000
			$38,150		$38,150

In addition to those accounts listed on the trial balance, the chart of accounts for Masasi Company also contains the following accounts and account numbers: No. 158 Accumulated Depreciation-Office Equipment, No. 212 Salaries Payable,  No. 244 Utilities Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense.

Other data:

1. Supplies on hand at June 30 are $600.
2. A utility bill for $150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $2,500 of unearned service revenue has been earned at the end of the month.
5. Salaries of $2,000 are accrued at June 30.
6. The office equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months.
7. Invoices representing $1,000 of services performed during the month have not been recorded as of June 30.

Instructions

(a) Prepare the adjusting entries for the month of June. Use J3 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.  (If an amount should be blank, enter a zero. All boxes must be filled to be correct.)

(c) Complete the adjusted trial balance at June 30,2010.

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