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

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

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

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

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

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

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

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

9. May 20: Purchased supplies on account, $735.

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

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

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

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

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

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

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

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

18. May 31: Paid dividends, $10,500.

19. Part 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. 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.

    Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2.

    a. Insurance expired during May is $275.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

    b. Supplies on hand on May 31 are $715.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

    c. Depreciation of office equipment for May is $330.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

    d. Accrued receptionist salary on May 31 is $325.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

    e. Rent expired during May is $1,600.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

    f. Unearned fees on May 31 are $3,210.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31