For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y9, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April: Apr. 1. The following assets were received from Jeff Horton: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received.

1. Paid three months’ rent on a lease rental contract, $6,000.

2. Paid the premiums on property and casualty insurance policies, $4,200.

4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.

5. Purchased additional office equipment on account from Smith Office Supply Co., $8,000.

6. Received cash from clients on account, $11,700. 

10. Paid cash for a newspaper advertisement, $350.

12. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.

12. Provided services on account for the period April 1–12, $21,900.

14. Paid receptionist for two weeks’ salary, $1,650. 

Record the following transactions on Page 2 of the journal:

17. Received cash from cash clients for fees earned during the period April 1–16, $6,600.

18. Paid cash for supplies, $725.

20. Provided services on account for the period April 13–20, $16,800.

24. Received cash from cash clients for fees earned for the period April 17–24, $4,450.

26. Received cash from clients on account, $26,500.

27. Paid receptionist for two weeks’ salary, $1,650.

29. Paid telephone bill for April, $540.

30. Paid electricity bill for April, $760. 

30. Received cash from cash clients for fees earned for the period April 25–30, $5,160.

30. Provided services on account for the remainder of April, $2,590.

30. Jeff withdrew $18,000 for personal use.

Instructions
1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Salaries Payable 

23 Unearned Fees

31 Jeff Horton, Capital

32 Jeff Horton, Drawing

41 Fees Earned

51 Salary Expense

52 Supplies Expense

53 Rent Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

2. Post the journal to a ledger of four-column accounts.

3. Prepare an unadjusted trial balance.

4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during April is $350.

b. Supplies on hand on April 30 are $1,225.

c. Depreciation of office equipment for April is $400.

d. Accrued receptionist salary on April 30 is $275.

e. Rent expired during April is $2,000.

f. Unearned fees on April 30 are $2,350.

5. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.

6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.

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. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 

10. Prepare a post-closing trial balance.