8. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a retained earnings statement. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Kelly Consulting Score: 42/49 Retained Earnings Statement For the Month Ended May 31, 2018 1 Retained earnings, May 31, 2018 $12,300.00 2 Net income $33,425.00 3 Dividends 10,500.00 4 Change in retained earnings 22,925.00 5 Retained earnings, May 31, 2018 $35,225.00 May 3 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. 5 Received cash from clients on account, $2,450. 9 Paid cash for a newspaper advertisement, $225. Paid Office Station Co. for part of the debt incurred on April 5, $640. 13 15 Recorded services provided on account for the period May 1-15, $9,180. 16 Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. 17 cord the following transactions on Page 6 of the journal: May 20 Purchased supplies on account, $735. 21 Recorded services provided on account for the period May 16-20, $4,820. 25 Recorded cash from cash clients for fees earned for the period May 17-23, $7,900. 27 Received cash from clients on account, $9,520. 28 Paid part-time receptionist for two weeks' salary, $750. 30 Paid telephone bill for May, $260. 31 Paid electricity bill for May, $810. 31 Recorded cash from cash clients for fees earned for the period May 26-31, $3,300. 31 Recorded services provided on account for the remainder of May, $2,650. 31 Paid dividends, $10,500. Required: 1. The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2018, is shown below. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the four-column account. Date the balances May 1, enter Balance in the Item column and select a check mark in the Posting Reference column. B. Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Do not insert the account numbers in the journal at this time.) 2. Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 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). Insurance expired during May is $275. Supplies on hand on May 31 are $715. Depreciation of office equipment for May is $330. Accrued receptionist salary on May 31 is $325. Rent expired during May is $1,600. Unearned fees on May 31 are $3,210. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 10 Unearned Fees 2,500.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 13 Dividends 14 Income Summary 15 Totals 46,050.00 46,050.00
