Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2008. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated on pages 161–174. During May, Kelly Consulting entered into the following transactions:

May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $1,550.
5. Received cash from clients on account, $1,750.
9. Paid cash for a newspaper advertisement, $100.
13. Paid Office Station Co. for part of the debt incurred on April 5, $400.
15. Recorded services provided on account for the period May 1–15, $5,100.
16. Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.
17. Recorded cash from cash clients for fees earned during the period May 1–16, $7,380.
20. Purchased supplies on account, $500.
21. Recorded services provided on account for the period May 16–20, $2,900.
25. Recorded cash from cash clients for fees earned for the period May 17–23, $4,200.
27. Received cash from clients on account, $6,600.
28. Paid part-time receptionist for two weeks’ salary, $750.
30. Paid telephone bill for May, $150.
31. Paid electricity bill for May, $225.
31. Recorded cash from cash clients for fees earned for the period May 26–31, $2,875.
31. Recorded services provided on account for the remainder of May, $2,200.
31. Kelly withdrew $7,500 for personal use.

Instructions
1. The chart of accounts for Kelly Consulting is shown on page 163, and the post-closing trial balance as of April 30, 2008, is shown on page 169. For each account in the postclosing trial balance, enter the balance in the appropriate Balance column of a fourcolumn account. Date the balances May 1, 2008, and place a check mark (????) in the Post Reference column. Journalize each of the May transactions in a two-column journal using Kelly Consulting’s chart of accounts. (Do not insert the account numbers in the journal at this time.)
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during May is $300.
b. Supplies on hand on May 31 are $950.
c. Depreciation of office equipment for May is $330.
d. Accrued receptionist salary on May 31 is $260.
e. Rent expired during May is $1,600.
f. Unearned fees on May 31 are $1,300.

5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
9. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.