226 Chapter 4 The Accounting Cycle Comprehensive Problem 1 Net Income $33,425 Kelly Pitney began her consulting business Kelly Consulting, on April 1, 2018. The account cycle for Kelly Consulting for April, including financial statements, was slustrated in this chape 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 need EXCIL PLATE 15. Pe 5. Received cash from clients en account, $2.450. 9. Pald cash for a newspaper advertisement, 5225 13. Paid Office Station Co. for part of the debt incurred on April 5, 5640. Recorded services provided on account for the period May 1-15, 59,180. 16. Pald part-time receptionist for two weeks' salary including the amount owed on April 30, 5750 17. Recorded cash from cash clients for fees oned during the period May 1-16. $8,360 Record the following transactions on 6 of the journal 20. Purchased supplies on account. $735. 21. Recorded services provided on account for the period May 16-20, 54,820. 25. Recorded cash from cash clients for fees earned for the period May 17-23, 57.900. 27. Received cash from clients on account, 59.520. 28. Pald part-time receptionist for two weeks' salary, $750. 30. Paid telephone bill for May, 5260 31. Paid electricity bill for May, 5810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 53,300. 31. Recorded services provided on account for the remainder of May, 52.650. 31. Paid dividends, $10.500 Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, is shown in Exhibit 17. For each account in the post closing trial balance, enter the balance in the appropriate Balance column of a four-column account Date the balances May 1, 20Y8, and place a check mark in the Posting Reference column Joumalize each of the May transactions in a two column journal starting on Page 5 of the journal and 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 $275. (b) Supplies on hand on May 31 are $715. 10 Depreciation of office equipment for May is $330. (d) Accrued receptionist salary on May 31 is $325 (e) Rent expired during May is $1,600. (f) Unearned fees on May 31 are 53,210. 5. (Optional) 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 7 of the journal 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders' equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. 226 Chapter 4 The Accounting Cycle Comprehensive Problem 1 Net Income $33,425 Kelly Pitney began her consulting business Kelly Consulting, on April 1, 2018. The account cycle for Kelly Consulting for April, including financial statements, was slustrated in this chape 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 need EXCIL PLATE 15. Pe 5. Received cash from clients en account, $2.450. 9. Pald cash for a newspaper advertisement, 5225 13. Paid Office Station Co. for part of the debt incurred on April 5, 5640. Recorded services provided on account for the period May 1-15, 59,180. 16. Pald part-time receptionist for two weeks' salary including the amount owed on April 30, 5750 17. Recorded cash from cash clients for fees oned during the period May 1-16. $8,360 Record the following transactions on 6 of the journal 20. Purchased supplies on account. $735. 21. Recorded services provided on account for the period May 16-20, 54,820. 25. Recorded cash from cash clients for fees earned for the period May 17-23, 57.900. 27. Received cash from clients on account, 59.520. 28. Pald part-time receptionist for two weeks' salary, $750. 30. Paid telephone bill for May, 5260 31. Paid electricity bill for May, 5810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 53,300. 31. Recorded services provided on account for the remainder of May, 52.650. 31. Paid dividends, $10.500 Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, is shown in Exhibit 17. For each account in the post closing trial balance, enter the balance in the appropriate Balance column of a four-column account Date the balances May 1, 20Y8, and place a check mark in the Posting Reference column Joumalize each of the May transactions in a two column journal starting on Page 5 of the journal and 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 $275. (b) Supplies on hand on May 31 are $715. 10 Depreciation of office equipment for May is $330. (d) Accrued receptionist salary on May 31 is $325 (e) Rent expired during May is $1,600. (f) Unearned fees on May 31 are 53,210. 5. (Optional) 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 7 of the journal 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders' equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance