co s2,000 on account from Ofice Star Paderiespvided on account for the period April 1-12, Paid cush clients for fees eamed during the period April on account, $5,6o0 s Parchased additional office equipr ?tecerved cash troos from clients on uccount, $1,800 April 1-16, s6.2so e Station Co. for part of the debt incutred on April 5, $1.200 provided on account for the period April 13-20, s2,1 cash clients for fees earned for the period April z for two wceks salary, $750 Ap 17-24, 85850 ts Paid cush for supplies eRded s 26, Received cash from clients 27. Paid part-time receptionist for two weeks' salary, $750 telephone bill for April, $1.50. id electricity bill for April, $200. 305 cash from cash clients for tees carned for the services provided on account for the re mainder of Apri, $1, 0. Recorded 30 Kelly withdrew s6,000 for personal use. in the souralyzing and Recording Transactions in the Journal e and record transactions in The first step in the accountin ournal using the accoun actions are analyzed and journalized using the flown I. Carefully read the description of the tra e entry accounting system. As illustrated in Chapter 2 t the , trans asset, li- cycle is to analyz ion of the transaction to determine whether an ity, owners equity, revenue, expense, or rawing account is affected i count inc 2. For each account affected by the transaction, d determine whether the ac or 3. Determine whether each orded as a debit increase or decrease should be rec d credit, following the rules of debit and credit shown in Exhibit 5 of Chapter 2 1. Record the transaction using a journal entry company's chart of accounts is useful in determining which accounts are af y the transaction. The chart of accounts for Kelly Consulting is as follows fect 31 Kelly Pitney, Capital 32 Kelly Pitney, Drawing 33 Income Summary 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscelilaneous Expense 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees After analyzing each of Kelly Consulting's transactions for April, the journal entries are recorded as shown in Exhibit 9 Step 2. Posting Transactions to the Ledger Periodically, the transactions recorded in the journal are posted to the accounts in the ledger. The debits and credits for each journal entry are posted to the accounts in the order in which they occur in the journal. As illustrated in Chapters 2 and 3, journal entries are posted to the accounts using the following four steps 1. The date is entered in the Date column of the account. 2., The amount is entered into the Debit or Credit column of the account. 3. The journal page number is entered in the Posting Reference column. 4. The account number is entered in the Posting Reference (Post. Ref) column in the
