P3-1A Joey Cuono started his own consulting firm, Cuono Company SpA on June 1, 2017. The trial balance at June 30 is shown below. Comment on the objectives and qualitative characteristics of accounting information (LO 9) Problems: Set A 147 Comment on the objectives and qualitative characteristics of financial reporting. (LO 9) Account Number 101 112 126 130 157 201 209 311 400 726 729 Debit 6,200 6,000 1,600 3,000 Credit € 4,700 4,000 20,000 7,900 CUONO COMPANY SpA Trial Balance June 30, 2017 Cash € Accounts Receivable Supplies Prepaid Insurance Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. (LO 5, 6, 7) Equipment 14,400 Accounts Payable Unearned Service Revenue Share Capital—Ordinary Service Revenue Salaries and Wages Expense Rent Expense 4,400 1,000 €36,600 €36,600 148 3 Adjusting the Accounts (c) Adj. trial balance €41,085 Prepare adjusting entries, post, and prepare adjusted trial balance and financial statements. (LO 5, 6, 7) In addition to those accounts listed on the trial balance, the chart of accounts for Cuono Com- pany SpA also contains the following accounts and account numbers: No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages 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 €340. 2. A utility bill for €185 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 is recorded for services performed at the end of the month. 5. Salaries of €1,600 are accrued at June 30. 6. The equipment has a 4-year life with no residual value. It is being depreciated at €300 per month for 48 months. 7. Invoices representing €2,400 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