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 ACCOUNT NO 32 COMPREHENSIVE PROBLEM 1. Continued ACCOUNT Koly Pitney, Drawing IDE E T DEBT CREDIT 6 10.500 10,500 ACCOUNT NO 33 ACCOUNT DATE Income Summary TEM CREDIT Worls Closing 40.000 10.000 33,4251 illette 6.5525 33.25 ACCOUNT Fees Eamed ACCOUNT NO 41 I DEBT CREDIT DEBIT BALANCE CREDIT Logo HI 2.180 8.360 4.8201 7.900 3.300l 26501 3.790 Bil 12510 22.30 30,260 52,560 362101 40.000 31 Adiusting SI Closind 120.000 ACCOUNT Salary Expense ACCOUNT NO 51 DATE ITEM DEBIT CREDIT DEBIT 2014 Cm Leag A Righe Red Maywe a t er Chapter 4 205 ACCOUNT NO 52 COMPREHENSIVE PROBLEM 1. Continued ACCOUNT Rent Expense DATE CREDIT ACCOUNT Supplies Expanse ACCOUNT NO 53 DATE ITEM DEBIT CREDIT DEBIT ACCOUNT Depreciation Expense ACCOUNT NO 54 DEBIT DEBIT ACCOUNT Insurance Expense ACCOUNT NO 55 DATE ITEM POST REF DEBIT CREDIT DEBIT Type here to search te e 9 Name Chapter 4 COMPREHENSIVE PROBLEM 1, Continued ACCOUNT Miscellaneous Expense ACCOUNT NO. 59 BALANCE DEBIT CREDIT DATE DEBIT CREDIT COMPREHENSIVE PROBLEM 1. Concluded 10. Post-Closing Trial Balance Credit 44.195 8.080 20151 1600 Particulars Cash Accounts Receivade supplies Prepaid Rent Prepaid Insurance ofice Equiment Accuente Depreciation 1Accounts Payable Saldes_Pavade Junerned Fees Kelly Pitney Capital 14.500 T 660 L 8951 3951 3,2101 65,295 $70.3151470.315