+ B Activity# 3: Adjusting Process This activity is a continuation of the Chapter 2 analyzing transaction. After completing the Unadjusted Trial balance, you are now required to complete the adjusting journal, post the adjustments to the ledger, prepare the adjusted trial balance, and prepare the financial statement. At month end the following data was analyzed and required adjustment: a) Insurance expired during April $300 b) Supplies on hand on April 30 $1,350 c) Depreciation of office equipment for April $330 d) Accrued receptionist salary on April 30 $120 e) Rent expired during April $1,600 f) Unearned fees on April 30 $2,500 General Journal (Adjusting Entries) For the month ended April 30, 2016 Date 4/30 Description INSURANCE EXPENSE PREPAID INSURANCE 4/30 SUPPLIES EXPENSE 4/30 . SUPPLIES DEPRECIATION EXPENSE ACCUMULATED DEPRECIATION Post Ref Debit Credit 12 300 12 300 12 850 12 850 22 12 330 12 330 Post G adjustments to the ledger (use the prepared General Ledger) Prepare the Adjusted Trial Balance Adjusted Trial Balance Accounts Debit Credit Total I Use the data from the adjusted trial balance and prepare the financial statements: a) Income Statement Income Statement For the month ended April 30, 2016 Service Revenue Expenses: Total Expenses b) Statement of Owner's Equity $ Statement of Owner's Equity For the month ended April 30, 2016 $ $ c) Classified Balance Sheet Current Assets: ASSETS Total Current Assets Property, plant, and equipment: Total property, plant, and equipment Total Assets LIABILITIES Current Liabilities: Total Liabilities OWNER'S EQUITY Total Liabilities and Owner's Equity Second Submission: Stan here Balance Sheet April 30, 2016 $ I Chart of Accounts 11 12 13 14 34 15 16 17 21 22 23 31 32 33 41 51 52 53 54 55 56 57 Cash Accounts Receivables Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Revenue Owner's Capital Owner's Drawings Income Summary Service Revenue Salaries Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Advertising Expense Utilities Expense Assume that for several years home. As of April 1, 2016, Kelly decided to move to rented quarters and to operate the business on a full-time basis. The business will be known as Kelly Consulting. During April, Kelly Consulting entered into the following transactions: 4/1 The following assets were received from Kelly Pitney: cash $13,100; accounts receivable $3,000; supplies $1,400; and office equipment $12,500. There were no liabilities received. 4/1 4/2 4/4 4/5 4/6 Paid three months' rent on a lease rental contract, $4,800 Paid in advance the premiums on property and casualty insurance policies, $1,800 Received cash from clients as an advance payment for services to be provided $5,000 Purchased additional office equipment on account from Office Station Co $2,000 Received cash from clients on account $1,800 4/10 Paid cash for a newspaper advertisement $120 4/12 Paid Office Station Co for part of the debt incurred on April 5, $1,200 4/12 Recorded services provided on account for the period April 1-12, $4,200 Paid part-time receptionist for two weeks' salary, $750 4/14 4/17 Recorded cash from cash clients for services during the period April 1 - 16 $6,250 4/18 Paid cash for supplies $800 4/20 4/24 4/26 4/27 Recorded services provided on account for the period April 13-20 $2,100 Recorded cash from cash clients for services for the period April 17-24 $3,850 Received cash from clients on account $5,600 Paid part-time receptionist for two weeks' salary $750 3 4/27 Paid part-time receptionist for two weeks' salary $750 4/29 Paid telephone bill for April $130 4/30 Paid electricity bill for April $200 4/30 Recorded cash from cash clients for services for the period April 25-30 $3,050 4/30 Recorded services provided on account for the remainder of April $1,500 4/30 Kelly withdrew $6,000 for personal use Record the above transactions in the General Journal General Journal For the month ended April 30, 2016 Date 4/1 Description Cash Post Ref. Debit Credit 11 13100 F Accounts Receivable 12 3000 Supplies 13 1400 Office Equipment 16 12500 Owner's Capital 31 30000 4/1 Prepaid Rent 14 4800 Cash 11 4800 4/2 Prepaid Insurance 15 1800 Cash 11 1800