Comprehensive Problem 1 8. Net income, $33,425 Excel Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The ac- counting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: 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. 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, $9,180. 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. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, $735. 21. Provided services on account for the period May 16-20, $4,820. 25. Received 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. Received cash from cash clients for fees earned for the period May 26-31, $3,300. 31. Provided services on account for the remainder of May, $2,650. 31. Kelly withdrew $10,500 for personal use. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2019, 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, 2019, and place a check mark (V) 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). a. Insurance expired during May is $275. b. Supplies on hand on May 31 are $715. Chapter 4 Completing the Accounting Cycle 227 c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $325. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $3,210. 5. (Optional) 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 owner's equity, and a balance sheet. 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 Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. Projects Chapter 4 204 Name COMPREHENSIVE PROBLEM 1, Continued ACCOUNT NO. 32 ACCOUNT DATE Kelly Pitney. Drawing TEM P ER BALANCE CREDIT DEBIT CREDIT DE 20.20 10,500 28 Closing 10.DO Income Summary ACCOUNT NO. 33 ACCOUNT DATE TEM POST REF DEBIT CREDIT DEBIT CREDIT 10,000 May 31 Closing sillas _311 Closind 8 8 40.000 83.4261 6,575 33.425 ACCOUNT Fees Earned ACCOUNT NO. 41 DATE ITEM REF DEBIT CREDIT DEBIT CREDIT Mo5 PATH 2.1801 8.3601 1.820 Z 900 3,300 2650 3.590 9.1801 12.500l 22.30 30,260_ 33.560 36,210 40,000! 131 Adius 31 Closing ACCOUNT Salary Expense ACCOUNT NO. 51 BALANCE DATE ITEM POST REF. DEBIT CREDIT 2014 Compleaning. All Rights Reserved. May not be red, copied or duplicated or posted to a publicly he w h ole or in Chapter 4 205 Name COMPREHENSIVE PROBLEM 1, Continued ACCOUNT Rent Expense DATE : ACCOUNT NO. 52 BALANCE POST DEBIT CREDIT DEBIT ITEM REF ACCOUNT Supplies Expense ACCOUNT NO. 53 DATE ITEM POST REF. BALANCE CREDIT DEBIT CREDIT DEBIT ACCOUNT NO. 54 ACCOUNT : Depreciation Expense DATE DATE ITEM PRE POST REF DEBIT DEBIT CREDIT CREDIT BALANCE DEBIT DEBIT BALANCE CREDI CREDIT ID ACCOUNT Insurance Expense ACCOUNT NO. 55 DATE ITEM POST REF. DEBIT CREDIT BALANCE CREDIT DEBIT Chapter 4 200 Name COMPREHENSIVE PROBLEM 1, Continued ACCOUNT Miscellaneous Expense ACCOUNT NO. 59 DATE ITEM POST REF DEBIT CREDIT BALANCE DEBIT CREDIT TT