1. Comprehensive Problem 1 Part 1:

   The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

   Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below:

   11	Cash	32	Retained Earnings
   12	Accounts Receivable	33	Dividends
   14	Supplies	41	Fees Earned
   15	Prepaid Rent	51	Salary Expense
   16	Prepaid Insurance	52	Rent Expense
   18	Office Equipment	53	Supplies Expense
   19	Accumulated Depreciation	54	Depreciation Expense
   21	Accounts Payable	55	Insurance Expense
   22	Salaries Payable	59	Miscellaneous Expense
   23	Unearned Fees
   31	Common Stock

   The post-closing trial balance as of April 30, 20Y8, is shown below:

   Kelly Consulting Post-Closing Trial Balance April 30, 20Y8
   	Account No.	Debit	Credit
   Cash	11	22,100
   Accounts Receivable	12	3,400
   Supplies	14	1,350
   Prepaid Rent	15	3,200
   Prepaid Insurance	16	1,500
   Office Equipment	18	14,500
   Accumulated Depreciation	19		330
   Accounts Payable	21		800
   Salaries Payable	22		120
   Unearned Fees	23		2,500
   Common Stock	31		30,000
   Retained Earnings	32		12,300
   		46,050	46,050

   Required:

   Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) If an amount box does not require an entry, leave it blank.

   May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.

   Description	Post. Ref.	Debit	Credit
   Accounts Receivable Cash Fees Earned Prepaid Rent Unearned Fees
   Accounts Receivable Cash Fees Earned Prepaid Rent Unearned Fees

   May 5: Received cash from clients on account, $2,450.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 9: Paid cash for a newspaper advertisement, $225.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Rent Expense
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Supplies Expense

   May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Office Equipment Supplies Expense
   Accounts Payable Accounts Receivable Cash Office Equipment Supplies Expense

   May 15: Recorded services provided on account for the period May 115, $9,180.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Salary Expense
   Accounts Receivable Cash Fees Earned Salaries Payable Unearned Fees
   Accounts Payable Cash Fees Earned Salaries Payable Salary Expense

   May 17: Recorded cash from cash clients for fees earned during the period May 116, $8,360.

   Description	Post. Ref.	Debit	Credit
   Accounts Receivable Cash Fees Earned Salary Expense Unearned Fees
   Accounts Payable Cash Fees Earned Salaries Payable Unearned Fees

   May 20: Purchased supplies on account, $735.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Office Equipment Supplies
   Accounts Payable Accounts Receivable Cash Supplies Supplies Expense

   May 21: Recorded services provided on account for the period May 1620, $4,820.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 25: Recorded cash from cash clients for fees earned for the period May 1723, $7,900.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 27: Received cash from clients on account, $9,520.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 28: Paid part-time receptionist for two weeks' salary, $750.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Cash Miscellaneous Expense Salaries Payable Salary Expense
   Accounts Payable Cash Salaries Payable Salary Expense Unearned Fees

   May 30: Paid telephone bill for May, $260.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Supplies Expense
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Supplies

   May 31: Paid electricity bill for May, $810.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Office Equipment
   Accounts Payable Accounts Receivable Cash Miscellaneous Expense Supplies

   May 31: Recorded cash from cash clients for fees earned for the period May 2631, $3,300.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 31: Recorded services provided on account for the remainder of May, $2,650.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees
   Accounts Payable Accounts Receivable Cash Fees Earned Unearned Fees

   May 31: Paid dividends, $10,500.

   Description	Post. Ref.	Debit	Credit
   Accounts Payable Cash Dividends Miscellaneous Expense Retained Earnings
   Accounts Payable Cash Dividends Miscellaneous Expense Retained Earnings