Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2010. The accounting cycle for Kelly Consulting for April , including financial statements was illistrated on page 157-168. During May, Kelly consulting entered the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $3,000 5. Received cash from clients on account, $2100 9. Paid cash for a newspaper advertisement, $300. 13. Paid office station company for part of the debt incurred on april 5, $400. 15. Recorded services provided on account for the period May 1-15, $7350 16. paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.

Record the following transaction 17. Recorded cash from cash clients for fees earned during the period May 1-16, $6150 20. Purchased supplies on account, $600 21. Recorded services provided on account for the period May 16-20, $6175 25. Recorded cash from cash clients for fees earned for the period May 17-23, $3125 27. Received cash from clients on account, $11,250 28. Paid part-time receptionist for two weeks salary, $750. 30. Paid telephone bill for May, $120. 31. Paid electricity bill for May $290. 31. Recorded cash from cash clients for fees earned for the period May 26-31, $2,800 31. Recorded services provided on account for the remainder of May, $1,900 31. Kelly withdrew $ 15,000 personal use. Instructions: 1. The chart of accounts for Kelly Consulting is shown on page 158, and the post-closing trial balance as of April 30, 2010 is shown on page 166. 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, 2010, and place a check mark in the posting reference column. Journalize each of the May transactions in a two column journal 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 trail 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 $300. b. Supplies on hand on May 31 are $750 c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $300. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $1,500 5. Enter the unadjusted trial balance on an end-of-period spreadsheet (worksheet) and complete the spreadsheet. 6. Journalize and post the adjusting entries. 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. (Income summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance

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