Accounting 1010 Comprehensive Problem Instructions Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter Instruction numbers in column A of this sheet correspond with the numbers in the Excel sheet column A. There is much work done that is srolling back and forth from the journals to the ledgers to the trail balances and statements. Printing your answers as you go can help. If you are working with other students one can read out your answers from the source document while another records the information in the destination document, Required: Part 1 1. A. If you will be using the Microsoft Teams site to work with your group members this instruction file and the Excel sheet titled: Comprehensive Problem Excel" are already uploaded for your collaborative use there. The Excel file is where your answers will be recorded and graded. The Microsoft Teams site will save all the work done by each of your group members If you choose to not use Microsoft Teams download the excel spreadsheet titled "Comprehensive Problem Excel" found in the content section or the Dropbox where these instructions were. The Excel file is where you answers will be recorded and graded. Each group will be responsible for deciding how to record the work of each group member and combine the work into one document. The Excel file used for recording your answers is interactive. All active cells need to have a value in them. If a cell should be blank please put a zero in the cell. This is a flaw of the file but leaving an active cell blank will reduce your grade. This comes into play more in the ledgers and the ten-column worksheet. Not all errors will be marked in the file. Errors that are marked will have a small asterisk to indicate that cell is not correct. I can help you with errors that are not marked clearly B. Journalize each of the May transactions in a 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. The posting references should be entered when the entries are posted to the ledger.) Accounting 1010 Comprehensive Problem Instructions 2. A The chart of accounts is shown below as well as the previous month's post-closing trial balance as of April 30, 2019. For each account in the April 30th post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2019, enter Balance in the Item column and enter 'X'in the Posting Reference column. B. Post the journal entries on pages 5 and 6 of the journal (listed below) to the four- column account ledgers. 3 4 C. Add the appropriate posting references to both the journal and ledgers. Prepare an unadjusted trial balance. Accounts with a zero balance can be left out of the trial balance 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 The ten column End-Of-Period Spreadsheet is #5 but this is best completed after # 6. 6 A. Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles. B. Post the adjusting entries to the ledger, inserting balances in the accounts affected. C. Add the appropriate posting reference to the adjusting entries in the journal and the ledgers Accounting 1010 Comprehensive Problem Instructions 5 A. Record the adjustment in the End-Of-Period Spreadsheet using the journal entries you completed in instruction 6. B. Complete the 10 column end-of-period spreadsheet. First, the adjusted trial balance can be completed using the unadjusted trial balance and the adjustments made. Finally, extend the adjusted trial balance amounts to either the income statement columns or the balance sheet columns. Complete the bottom of the income statement and balance sheet columns. This will give you most of what you need to do the statements in part 2 of this assignment. 7 Prepare an adjusted trial balance using your answers shown in the 10 column end-of- period spreadhseet. Accounts with zero balances can be left out of the trial balance 3 May entries for use in instruction 1 B. During May, Kelly Consulting entered into the following transactions May Record the following transactions on Page 5 of the journal 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, 13 Paid Office Station Co. for part of the debt incurred on April 5, $640. 15 Provided services on account for the period May 1-15, 89.180. 16 Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750 17 Received cash from cash clients for fees earned during the period May 1-16, $8,360 20 Record the following transactions on Page 6 of the journal Purchased supplies on account, $735 Provided services on account for the period May 16-20, $4.820 21 Accounting 1010 Comprehensive Problem Instructions 25 Received cash from cash clients for fees earned for the period May 17-23, $7.900. 27 28 30 Received cash from clients on account, $9,520. Paid part-time receptionist for two weeks' salary. $750. Paid telephone bill for May, $260. Paid electricity bill for May, $810. Received cash from cash clients for fees earned for the period May 26-31, $3,300. 31 31 31 Provided services on account for the remainder of May, $2,650 Kelly withdrew $10,500 for personal use. 31 April 30, 2019 post-closing trial balance for use in instruction 2A. Kelly Consulting POST-CLOSING TRIAL BALANCE April 30, 2019 ACCOUNT TITLE DEBIT CREDIT Cash 22.100 Accounts Receivable 3,400 Supplies 1,350 Prepaid Rent 3,200 Prepaid Insurance 1,500 Office Equipment 14,500 Accumulated Depreciation 330 Accounts Payable 800 Salaries Payable 120 Unearned Fees 2,500 Kelly Pitney, Capital 42.300 Totals 46,050 $ 46,050 $ Part 2 Instructions Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into transactions. In Part 1 of this problem, the accounting cycle was completed up through the completion of the ten column end-of-period worksheet Required Part 2 8 Using the data recorded in the ten column end-of-period work sheet in Part 1. to prepare an income statement, a statement of owner's equity, and a balance sheet Refer to the Chart of Accounts and the Labels and Amounts found later in this document. Be sure to complete the statement headings. The grading of amounts often expect a negative sign but not always. Be sure to check whether that is the issue when you have an error 9. A. Prepare the closing entries on Page 8 of the journal. Refer to the Chart of Accounts for exact wording of account titles. B. Post the closing entries to the four-column account ledgers. Add the appropriate posting reference to the journal and the ledgers. 10 Prepare a post-closing trial balance. CHART OF ACCOUNTS Kelly Consulting General Ledger ASSETS 11 Cash 12 Accounts Receivable REVENUE 14 Supplies 41 Fees Earned 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation EXPENSES 51 Salary Expense LIABILITIES 52 Rent Expense 21 Accounts Payable 53 Supplies Expense 22 Salaries Payable 54 Depreciation Expense 23 Unearned Fees 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Kelly Pitney, Capital 32 Kelly Pitney, Drawing Labels Current assets Current liabilities Expenses For the Month Ended May 31, 2019 May 31, 2019 Property, plant, and equipment Amount Descriptions Decrease in Owner's Equity Increse in Owner's Equity Kelly Pitney, capital May 1, 2019 Kelly Pitney, capital May 31, 2019 Net income Net income during the month Total assets Total current assets Total current liabilities Total liabilities Total liabilities and owner's equity Total Expenses Total property, plant, and equipment Withdrawals JOURNAL Page 5 Post. Ref. Debit Credit Date Description 2019 May 3 Cash Unearned Fees 4,500 11 23 4,500 5 Cash Accounts Receivable 2,450 11 12 2,450 9 Miscellaneous Expense Cash 225 59 11 225 13 Accounts Payable Cash 21 640 11 640 15 Accounts Receivable Fees Earned 9,180 12 41 9.180 630 16 Salary Expense Salaries Payable Cash 51 22 11 120 750 17 Cash Fees Earned 11 41 8,360 8,360 JOURNAL Page 6 Post. Ref. Debit Credit Date Description 019 May 20 Supplies Accounts Payable 735 14 21 735 4,820 21 Accounts Receivable Fees Earned 12 41 4,820 11 7,900 25 Cash Fees Earned 41 7.900 9,520 27 Cash Accounts Receivable 11 12 9,520 750 28 Salary Expense Cash 51 11 750 59 260 30 Miscellaneous Expense Cash 11 260 59 810 31 Miscellaneous Expense Cash 11 810 11 3.300 31 Cash Fees Earned 41 3.300 12 2.650 31 Accounts Receivable Fees Earned 41 2.650 32 10.500 31 Kelly Pitney, Drawing Cash 11 10.500 ., and 9. GENERAL LEDGER Cash 11 Post. Ref. Balance Cr. Item Dr. Cr. Dr. Date 2019 May 1 Balance 3 5 9 13 16 17 25 27 28 30 31 31 31 23 12 59 21 11 41 41 12 51 59 59 41 4,500 2,450 0 0 0 8,360 7.900 9,520 0 0 0 3,300 0 0 0 225 640 750 0 0 0 750 260 810 0 10,500 22,100 26,600 29,050 28,825 28,185 27,435 35,795 43,695 53,215 52,465 52,205 51,395 54,695 44,195 0 0 0 0 0 0 0 0 0 0 0 0 0 32 Accounts Receivable 12 Post. Ref. Balance Cr. Dr. Cr. Dr. Date Item 2019 May 1 Balance 5 15 V 11 41 41 11 41 21 27 31 0 9.180 4,820 0 2,650 2,450 0 0 9,520 0 3,400 950 10.130 14,950 5,430 8,080 0 0 0 0 0 Supplies 14 Post. Balance Supplies 14 Post. Ref. Dr. Cr. Balance Cr. Dr. Date Item 2019 May 1 Balance 20 31 Adjusting V 1,350 735 Prepaid Rent 15 Post Ref. Dr. Cr. Balance Cr. Dr. Date Item 2019 May 1 Balance 31 Adjusting 3,200 Prepaid Insurance 16 Post. Ref. Dr. Balance Cr. Cr. Dr. Date Item 2019 May 1 Balance 31 Adjusting 1,500 Office Equipment 18 Post Ref. Dr. Date Item 2019 May 1 Balance Cr. Dr. Balance Cr. 14,500 Accumulated Depreciation 19 Post. Ref. Balance Cr. Dr. Cr. Dr. Date Item 2019 May 1 Balance 31 Adjusting 330 Accounts Payable 21 Balance Post. Ref. Item Dr. Cr. Dr. Cr. Date 2019 May 1 13 20 Balance V 800 Salaries Payable Post Ref. 22 Balance Cr. Dr. Cr. Dr. Date Item 2019 May 1 Balance 16 31 Adjusting 120 Unearned Fees 23 Post. Ref. Dr. Cr. Balance Cr. Dr. Date Item 2019 May 1 Balance 3 31 Adjusting 2,500 31 Kelley Pitney, Capital Post Ref. Balance Cr. Dr. Cr. Dr. Date Item 2019 May 1 Balance 31 Closing 31 Closing V 42,300 Kelley Pitney, Drawing Post. Ref. 32 Balance Cr. Item Dr. Cr. Dr. Date 2019 May 31 31 Closing Fees Earned Post. Ref. 41 Balance Cr. Item Dr. Cr. Dr. Date 2019 May 15 17 21 25 31 31 31 Adjusting 31 Closing Salary Expense Post. Ref. 51 Balance Cr. Dr. Cr. Dr. Date Item 2019 May 16 28 31 Adjusting 31 Closing Rent Expense Post Ref. 52 Balance Cr. Dr. Cr. Dr. Date Item 2019 May 31 Adjusting 31 Closing Supplies Expense 53 Balance Post. Ref. Dr. Cr. Dr. Cr. Date Item 2019 May 31 Adjusting 31 Closing Depreciation Expense Post. Ref. 54 Balance Cr. Dr. Cr. Dr. Date Item 2019 May 31 Adjusting 31 Closing 1 Insurance Expense Post. Ref. 55 Balance Cr. Dr. Cr. Dr. Date Item 2019 May 31 Adjusting 31 Closing Miscellaneous Expense 59 Post. Ref. Balance Cr. Dr. Cr. Dr. Date Item 2019 May 9 30 31 31 Closing Debit Balances Credit Balances KELLY CONSULTING Unadjusted Trial Balance May 31, 2019 Acct. No. Cash 11 Accounts Receivable 12 Supplies 14 Prepaid Rent 15 Prepaid Insurance 16 Office Equipment 18 Accumulated Depreciation 19 Accounts Payable 21 Salaries Payable 22 Unearned Fees 23 Kelley Pitney, Capital 31 Kelley Pitney, Drawing 32 Fees Earned 41 Salary Expense 51 Rent Expense 52 Supplies Expense 53 Depreciation Expense 54 Insurance Expense 55 Miscellaneous Expense 59 KELLY CONSULTING End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 2019 Adjusted Adjustments Trial Balance Dr Cr Dr. Cr. Income Statement Dr. Cr. Balance Sheet CE Dr. Unadjusted Trial Balance Dr. Cr. 44, 195 8,080 2,085 3.200 1,500 14,500 330 895 Account Tito Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accur Depreciation Accounts Payable Salaries Payable Unearned Fees Kelley Pitney, Capital Kelley Pitney, Drawing Fees Eamed Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense 7.000 42,300 10,500 36.210 1,300 1.295 85,735 86,735 JOURNAL Page 7 Post. Ref. Debit Credit Date 2019 May 31 Description Adjusting Entries 31 31 31 LIITTO 31 II 31 Debit Balances Credit Balances KELLY CONSULTING Adjusted Trial Balance May 31, 2019 Acct. No. Cash 11 Accounts Receivable 12 Supplies 14 Prepaid Rent 15 Prepaid Insurance 16 Office Equipment 18 Accumulated Depreciation 19 Accounts Payable 21 Salaries Payable 22 Unearned Fees 23 Kelley Pitney, Capital 31 Kelley Pitney, Drawing 32 Fees Earned 41 Salary Expense 51 Rent Expense Supplies Expense 53 Depreciation Expense 54 Insurance Expense 55 Miscellaneous Expense 59 52 KELLY CONSULTING Income Statement For the Month Ended May 31, 2019 Revenues: Expenses Total expenses Net income KELLY CONSULTING Statement of Owner's Equity For the Month Ended May 31, 2019 Kelley Pitney, capital, May 1, 2019 Kelley Pitney, capital, May 31, 2019 KELLY CONSULTING Balance Sheet May 31, 2019 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current assets: Total liabilities Owner's Equity Total liabilities and owner's equity JOURNAL Page 8 Date 2019 Description Closing Entries Post. Ref. Debit Credit May 31 31 0. Debit Balances Credit Balances KELLY CONSULTING Post-Closing Trial Balance May 31, 2019 Acct. No. Cash 11 Accounts Receivable 12 Supplies 14 Prepaid Rent 15 Prepaid Insurance 16 Office Equipment 18 Accumulated Depreciation 19 Accounts Payable 21 Salaries Payable 22 Unearned Fees 23 Kelley Pitney, Capital 31