4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Ma Received cash from clients as an advance payment for services to be provided and recorded it as uncared foes, $4.500 Received cash from clients on account, $2,450 1 Paid cash for a newspaper advertisement, $225. 13. Paid Office Station Co. for part of the debt incurred on April. 5640 15. Recorded services provided on account for the period May 1-15.59.180 16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, 5750 17. Recorded cash from cash clients for fees earned during the period May 1-16, S8,360, Record the following transactions on Page 6 of the journal: po. purchased supplies on account, $735. Recorded services provided on account for the period May 16-20, S4,830 B. Recorded cash from cash clients for fees earned for the period May 17-23.57.900 27. Received cash from clients on account, 89,520 28. Paid part-time receptionist for two weeks' salary, 5750. po. paid telephone bill for May, $260. 1. Faid electricity bill for May, S810. 31. Recorded cash from cash clients for fees eamed for the period May 26-31, 53,300 31. Recorded services provided on account for the remainder of May, $2,650. 2.1. 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. Journalize 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). 1. Insurance expired during May is $275. 2. Supplies on hand on May 31 are 5715. 3. Depreciation of office equipment for May is $330. 4. Accrued receptionist salary on May 31 is $325. 5. Rent expired during May is $1,600. 6. Unearned fees on May 31 are $3,210. 5. (REQUIRED 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. Answer Check Figure: Net income, 533,425 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. in Exhibit 9 - Chart of Accounts: 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable Open Word 31 common Stack 29 in Exhibit 17: Post Closing Trial Balance Post-Closing Trial Balance, Kelly Consulting Kelly Consulting Post-Closing Trial Balance April 30, 2018 Account No. Credit Balances 11 12 14 15 Debit Balances 22,100 3,400 1,350 3,200 1,500 14,500 16 Cash.. Accounts Receivable Supplies Prepaid Rent Prepaid Insurance.. Office Equipment Accumulated Depreciation Accounts Payable... Salaries Payable Unearned Fees Common Stock Retained Earnings 18 19 21 22 23 31 330 800 120 2,500 30,000 12,300 46,050 32 46,050 Open Word 19 C) Complete the worksheet. The worksheet must be legible and hand- written. (This is required, not optional) D) Prepare an Income statement in good form. The Income Statement must be prepared on excel or word or another computer program. E) Prepare a Statement of Stockholders Equity. The Statement of Stockholders' Equity must be prepared on excel or word or another computer program. F) Prepare a Balance Sheet. The Balance Sheet must be legible and hand-written G) You must journalize each of the May transaction in a two-column journal starting on Page 5. The journal entries must be handwritten. (Follow proper process of journalizing.) H) Post the journal entries to the ledger of four-columns. Use the Chart of Accounts provided in the problem. The postings to the general ledger must be handwritten. 1) Prepare a legible hand-written post-closing trial balance. J) Journalize and post the adjusting entries and the closing entries to the general journal. The journal entries and postings entries must be hand-written. K) Post all the journal entries, adjusting entries and closing entries to the general ledger. The general ledger must be hand-written. Use the Chart of Accounts provided. L) Prepare a post-closing trial balance. The post-closing trial balance must be prepared on excel or word or another computer program