Problem 3-1A Deanna Nardelli started her own consulting firm, Nardelli Consulting, on May 1, 2017. The trial balance at May 31 is as follows. NARDELLI CONSULTING Trial Balance May 31, 2017 Account Number Debit Credit 101 Cash $ 4,600 112 Accounts Receivable 6,000 126 Supplies 1,900 130 Prepaid Insurance 2,400 149 Equipment 11,400 201 Accounts Payable $ 4,500 209 Unearned Service Revenue 2,000 311 Common Stock 16,600 400 Service Revenue 7,600 726 Salaries and Wages Expense 3,300 729 Rent Expense 1,100 $30,700 $30,700 In addition to those accounts listed on the trial balance, the chart of accounts for Nardelli Consulting also contains the following accounts and account numbers: No. 150 Accumulated DepreciationEquipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. $800 of supplies have been used during the month. 2. Utilities expense incurred but not paid on May 31, 2017, $200. 3. The insurance policy is for 2 years. 4. $500 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. Nardelli Consulting has two employees, who are paid $1,100 each for a 5-day work week. 6. The equipment has a 5-year life with no salvage value. It is being depreciated at $190 per month for 60 months. 7. Invoices representing $1,500 of services performed during the month have not been recorded as of May 31.

Prepare the adjusting entries for the month of May. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31 7. May 31 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT

Enter the totals from the trial balance as beginning account balances. Post the adjusting entries to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash No. 101 Date Explanation Ref Debit Credit Balance May 31 Balance Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Supplies No. 126 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Equipment No. 149 Date Explanation Ref Debit Credit Balance May 31 Balance Accumulated DepreciationEquipment No. 150 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Unearned Service Revenue No. 209 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 Common Stock No. 311 Date Explanation Ref Debit Credit Balance May 31 Balance Service Revenue No. 400 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 May 31 Adjusting J4 Supplies Expense No. 631 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 Depreciation Expense No. 717 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J4 Rent Expense No. 729 Date Explanation Ref Debit Credit Balance May 31 Balance Utilities Expense No. 736 Date Explanation Ref Debit Credit Balance May 31 Adjusting J4 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT

Prepare an adjusted trial balance at May 31, 2017. NARDELLI CONSULTING Adjusted Trial Balance For the Month Ended May 31, 2017May 31, 2017For the Quarter Ended May 31, 2017 Debit Credit $ $ Totals $ $ SHOW LIST OF ACCOUNTS