For the past several years, Kelly Pitney has operated a part-time consulting business from her home. Kelly Pitney also buys and sells merchandise. As of April 1, 2006, Kelly decided to move to rented quarters and to operate the business, which was to be known as Hippocrates Consulting, on a full-time basis. Hippocrates Consulting entered into the following transactions during April:

April 1. The following assets were received from Kelly Pitney: cash, $13,100; accounts receivable, $3,000; merchandise $5,600; supplies, $1,400; and office equipment, $12,500. There were no liabilities received.

1. Paid three months' rent on a lease rental contract, $4,800.

2. Paid the premiums on property and casualty insurance policies, $1,800.

4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000.

5. Purchased merchandise on account from Office Station Co., $2,000.

6. Received cash from clients on account, $1,800.

10. Paid cash for a newspaper advertisement, $120.

12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. ,

12. Recorded services provided on account for $4,200.

14. Paid part-time receptionist for two weeks' salary, $750.

17. Recorded cash from cash clients for fees earned during the period April 1-16, $6,250.

18. Paid cash for supplies, $800.

19. Sold merchandise for $3,000 in cash.

20. Recorded services provided on account for $2,100.

27. Paid part-time receptionist for two weeks' salary, $750.

29. Sold merchandise on account for $4,500.

30. Kelly withdrew $6,000 for personal use.

NSTRUCTONS

1. Journalize each transaction. (Use Periodic Inventory Method)

2. Post the journal to a ledger.

3. Prepare a unadjusted trial balance as of April 30, 2006.

4. Journalize and post the adjusting entries.

a. Insurance expired during April is $300.

b. Supplies on hand on April 30 are $1,350.

c. Depreciation of office equipment for April is $700.

d. Accrued receptionist salary on April 30 is $120.

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

f. Unearned fees on April 30 are $2,500.

g. Cost of merchandise on hand as of April 30 is $2,600.

5. Prepare an income statement, and a balance sheet.

6. Journalize and post the closing entries.

7. Prepare a post-closing trial balance.