For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2016, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April:

Apr.	1	The following assets were received from Jeff Horton in exchange for common stock: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received.
	1	Paid three months rent on a lease rental contract, $6,000.
	2	Paid the premiums on property and casualty insurance policies, $4,200.
	4	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
	5	Purchased additional office equipment on account from Smith Office Supply Co., $8,000.
	6	Received cash from clients on account, $11,700.
	10	Paid cash for a newspaper advertisement, $350.
	12	Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
	12	Recorded services provided on account for the period April 112, $21,900.
	14	Paid receptionist for two weeks salary, $1,650.

Record the following transactions on Page 2 of the journal:

Apr.	17	Recorded cash from cash clients for fees earned during the period April 116, $6,600.
	18	Paid cash for supplies, $725.
	20	Recorded services provided on account for the period April 1320, $16,800.
	24	Recorded cash from cash clients for fees earned for the period April 1724, $4,450.
	26	Received cash from clients on account, $26,500.
	27	Paid receptionist for two weeks salary, $1,650.
	29	Paid telephone bill for April, $540.
	30	Paid electricity bill for April, $760.
	30	Recorded cash from cash clients for fees earned for the period April 2530, $5,160.
	30	Recorded services provided on account for the remainder of April, $2,590.
	30	Paid dividends, $18,000.

Required:

1.

Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

2.

Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal.

3.

Prepare an unadjusted trial balance.

4.

At the end of April, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).

	Insurance expired during April is $350.
	Supplies on hand on April 30 are $1,225.
	Depreciation of office equipment for April is $400.
	Accrued receptionist salary on April 30 is $275.
	Rent expired during April is $2,000.
	Unearned fees on April 30 are $2,350.

5.

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.

6.

A.	Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on April 30.
B.	Post the adjusting entries, inserting balances in the accounts affected.

7.

Prepare an adjusted trial balance.

8.

A.	Prepare an income statement for the month ended April 30, 2016. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
B.	Prepare a retained earnings statement for the month ended April 30, 2016. Be sure to complete the statement heading. If a net loss has been incurred or there has been a decrease in retained earnings, enter that amount as a negative number using a minus sign. Use the list of Labels and Amount Descriptions for the correct wording of text items.
C.	Prepare a balance sheet as of April 30, 2016. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Use the list of Labels and Amount Descriptions for the correct wording of text items other account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

9.

A.	Journalize the closing entries on page 4 of the journal.
B.	Post the closing entries, inserting balances in the accounts affected. Leave the ITEM column BLANK for each row. If the account balance is zero (0) after closing entries are posted, enter a zero (0) in the account's normal balance column.

10.

Prepare a post-closing trial balance.