Jacki Lopez Started JVL Consulting on January 1, 2011

question 42

Essay

Jacki Lopez started JVL Consulting on January 1, 2011. The following are the account balances at the end of the first month of business, before adjusting entries were recorded:
Adjustment data:
Supplies on hand at the end of the month: $300
Unbilled consulting revenue: $850
Rent expense for the month: $2,000
Depreciation on equipment: $150
(a) Prepare the required adjusting entries, adding accounts as needed.
(b) Prepare an Adjusted Trial Balance for JVL Consulting as of January 31, 2011.

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Definitions:

Income Statement

A document detailing a company's income, outgoings, and financial performance for a set timeframe.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Accounts Payable

Obligations a company must settle with lenders or suppliers within a short timeframe, often within a year.

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.