Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balanc Instructions Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. 5 Received cash from clients on account, $2,450. 9 13 15 16 Paid cash for a newspaper advertisement, $225. Paid Office Station Co. for part of the debt incurred on April 5, $640. Recorded services provided on account for the period May 1-15, $9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750 Recorded cash from cash clients for fees earned during the period May 1-16, $8,360 17 Record the following transactions on Page 6 of the journal: May 20 21 Purchased supplies on account, $735. Recorded services provided on account for the period May 16-20, $4,820. Recorded cash from cash clients for fees earned for the nerind May 17 27 25 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions 21 25 Recorded services provided on account for the period May 16-20, $4,820. Recorded cash from cash clients for fees earned for the period May 17-23, $7,900. 27 Received cash from clients on account, $9,520. 28 Paid part-time receptionist for two weeks' salary, $750. 30 Paid telephone bill for May, $260. 31 31 Paid electricity bill for May, $810. Recorded cash from cash clients for fees earned for the period May 2631, $3,300. 31 Recorded services provided on account for the remainder of May, $2,650. Paid dividends, $10,500. 31 Required: 1. The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2018, is shown below. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. For each account in the post-closing trial balance, ente he balance in the appropriate Balance Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the four-column account. Date the balances May 1, enter Balance in the Item column and select a check mark in the Posting Reference column. B. Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Do not insert the account numbers in the journal at this time.) 2. Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during May is $275. I Supplies on hand on May 31 are $715. Depreciation of office equipment for May is $330. Accrued receptionist salary on May 31 is $325. . . . Instructions 2. Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during May is $275. Supplies on hand on May 31 are $715. Depreciation of office equipment for May is $330. Accrued receptionist salary on May 31 is $325. Rent expired during May is $1,600. Unearned fees on May 31 are $3,210. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10- column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. A. Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles. I B. Post the adjusting entries to the ledger. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 7. Prepare an adjusted trial balance. . 260.00 + 3,300.00 1 Cash May 31 Cash Fees Earned 3,300.00 1 2,650.00 1 2.650.00 + May 31 Accounts Receivable Fees Earned May 31 Dividends Cash 10,500.00 + 10,500.00 1 275.00 May 31 Insurance Expense ! 275.00 1 Prepaid Insurance Points 60.7/70 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance sumal Shaded cells have feedback JOURNAL Score: 129/163 ACCOUNTING EQUATION DATE DESCRPTION POST. REF. DEBIT CREDIT ASSETS EQUITY LIABILITIES + 1,370.00 1370.00 . 350.00 . 350.00 . Adjusting Entries May 31' Supplies Expense Supplies May 31 Depreciation Expense Accumulated Depreciation May 31 Salary Expense Cash May 31 Rent Expense Prepaid Rent May 31 Unearned Fees 325.00 1 325.00 . 1.600.00 1,600.00 1 3,790.00 3.790.00 + Fees Eamed 810.00 1 May 31 Miscellaneous Expense Cash 810.00 + Journal Chart of Accounts Instructions Ledger Unadjusted Trial Balance Adjust Shaded cells have feedback. X Unadjusted Trial Balance Kelly Consulting Score: 56/68 UNADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 54,695.00 2 Accounts Receivable 5,430.00 2,085.00 3 Supplies 4 Prepaid Rent 3,200.00 5 Prepaid Insurance 1,500.00 14,500.00 330.00 6 Office Equipment 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 10 Unearned Fees 895.00 7,000.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjust Shaded cells have feedback. X 7,000.00 Unadjusted Trial Balance uyue 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Dividends 30,000.00 12,300.00 14 Fees Earned 33,560.00 1,380.00 15 Salary Expense 16 Rent Expense 17 Supplies Expense 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense * 1,295.00 21 Totals 44,385.00 44,385.00 Points: 14/17 Instructions Chart of Accounts Labels and Amount Descriptions ! Journal Ledger Incon Income Statement Score: 79/88 Kelly Consulting Income Statement For the Month Ended May 31, 2018 1 Fees earned $4,000.00 2 Expenses: 3 Salary expense 4 Rent expense 5 Supplies expense 6 Depreciation expense 7 Insurance expense 8 Miscellaneous expense $1,705.00 1,600.00 1,370.00 330.00 275.00 1,295.00 9 6,575.00 10 Net income $33,425.00 Score: 38/49 Kelly Consulting Retained Earnings Statement For the Month Ended May 31, 2018 1 Retained earnings, May 1, 2018 $12,300.00 2 Net income $33,425.00 3 Dividends 10,500.00 4 Change in retained earnings 10,500.00 5 Retained earnings, May 31, 2018 $35,225.00 CURCO TURTU Kelly Consulting Balance Sheet For the Month Ended May 31, 2018 1 Assets 2 Current assets: 3 Cash $44,195.00 4 Accounts receivable 8,080.00 715.00 5 Supplies Prepaid rent 6 1,600.00 7 Prepaid insurance 1,225.00 8 Total current assets $55,185.00 9 Property, plant, and equipment: 10 Office equipment $14,500.00 11 Depreciation expense (660.00) 12 Total assets 13,840.00 13 Total property, plant, and equipment $69,655.00 Instructions Chart of Accounts Labels and Amount Descriptions Journal Ledg Retained Earnings Statement Balance Sheet Post-Closing Trial Balance VIV VUL 13 Total property, plant, and equipment $69,655.00 14 Liabilities 15 Current liabilities: $895.00 16 Accounts payable 17 Salaries payable 18 Unearned fees 325.00 3,210.00 19 Total liabilities $4,430.00 20 Stockholders' Equity 21 Common stock $30,000.00 35,225.00 22 Retained earnings, May 31, 2018 23 Total stockholders' equity 65,225.00 24 Total liabilities and stockholders' equity $69,655.00 tructions amal Shaded May 30 Miscellaneous Expense 260.00 Cash 260.00 1 3,300.00 t 3,300.00 May 31 Cash Fees Earned May 31' Accounts Receivable Fees Earned May 31 Dividends 2,650.00 1 2,650.00 10,500 Cash 10,500.00 1 275.00 May 31 Insurance Expense Prepaid Insurance 275.00 y Work 1 more Check My Work uses remaining. Email Instructor Save and 260.00 1 Cash 3,300.00 1 3,300.00 1 May 31 Cash Fees Earned May 31 Accounts Receivable 2,650.00 1 2.650.00 + Fees Earned 1 May 31 Dividends 10,500.00 Cash 10,500.00 1 275.00 1 May 31 Insurance Expense Prepaid Insurance 275.00 1 Points: 607/ 70 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance sumal Shaded cells have feedback JOURNAL Score: 129/163 ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY ! 1,370.00 1370.00 350.00 + 350.00 . DATE Adjusting Entries May 31' Supplies Expense Supplies May 31 Depreciation Expense Accumulated Depreciation May 31 Salary Expense Cash May 31' Rent Expense Prepaid Rent May 31 Unearned Fees 325.00 1 325.00 ! 1,600,00 1.600.00 1 3,790,00 + 3.790.00 t Fees Eamed 810.00 1 May 31 Miscellaneous Expense Cash 810.00 Journal Chart of Accounts Instructions Ledger Unadjusted Trial Balance Adjust Unadjusted Trial Balance Shaded cells have feedback. X Score: 56/68 Kelly Consulting UNADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 54,695.00 2 Accounts Receivable 5,430.00 3 Supplies 2,085.00 Prepaid Rent 3,200.00 5 Prepaid Insurance 1,500.00 14,500.00 330.00 6 Office Equipment 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 895.00 10 Unearned Fees 7,000.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjust Shaded cells have feedback. X 7,000.00 Unadjusted Trial Balance Jutustu 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Dividends 30,000.00 12,300.00 14 Fees Earned 33,560.00 1,380.00 15 Salary Expense 16 Rent Expense 17 Supplies Expense 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 1,295.00 21 Totals 44,385.00 44,385.00 Points: 14/17 Instructions Chart of Accounts Labels and Amount Descriptions Journal Ledger Incon Income Statement Score: 79/88 Kelly Consulting Income Statement For the Month Ended May 31, 2018 $4,000.00 1 Fees earned 2 Expenses: 3 Salary expense 4 Rent expense 5 Supplies expense 6 Depreciation expense 7 Insurance expense 8 Miscellaneous expense $1,705.00 1,600.00 1,370.00 330.00 275.00 1,295.00 9 6,575.00 10 Net income $33,425.00 Score: 38/49 Kelly Consulting Retained Earnings Statement For the Month Ended May 31, 2018 1 Retained earnings, May 1, 2018 $12,300.00 2 Net income $33,425.00 3 Dividends 10,500.00 10,500.00 4 Change in retained earnings 5 Retained earnings, May 31, 2018 $35,225.00 CURCO TURTU Kelly Consulting Balance Sheet For the Month Ended May 31, 2018 1 Assets 2 Current assets: 3 Cash $44,195.00 4 8,080.00 Accounts receivable Supplies 5 715.00 6 1,600.00 Prepaid rent Prepaid insurance 7 1,225.00 8 Total current assets $55,185.00 9 Property, plant, and equipment: 10 Office equipment $14,500.00 11 Depreciation expense (660.00) 12 Total assets 13,840.00 13 Total property, plant, and equipment $69,655.00 Instructions Chart of Accounts Labels and Amount Descriptions !Journal Ledg Retained Earnings Statement Balance Sheet Post-Closing Trial Balance VUUTTUU VITUUT $69,655.00 13 Total property, plant, and equipment Liabilities 14 15 Current liabilities: $895.00 16 Accounts payable 17 Salaries payable 18 Unearned fees 325.00 3,210.00 19 Total Liabilities $4,430.00 20 Stockholders' Equity 21 Common stock $30,000.00 35,225.00 22 Retained earnings, May 31, 2018 23 Total stockholders' equity 65,225.00 24 Total liabilities and stockholders' equity $69,655.00