Kelly Consulting

POST-CLOSING TRIAL BALANCE

April 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	22,100.00
2	Accounts Receivable	3,400.00
3	Supplies	1,350.00
4	Prepaid Rent	3,200.00
5	Prepaid Insurance	1,500.00
6	Office Equipment	14,500.00
7	Accumulated Depreciation		330.00
8	Accounts Payable		800.00
9	Salaries Payable		120.00
10	Unearned Fees		2,500.00
11	Kelly Pitney, Capital		42,300.00
12	Totals	46,050.00	46,050.00

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. 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	Paid cash for a newspaper advertisement, $225.
	13	Paid Office Station Co. for part of the debt incurred on April 5, $640.
	15	Recorded services provided on account for the period May 115, $9,180.
	16	Paid part-time receptionist for two weeks salary including the amount owed on April 30, $750.
	17	Recorded cash from cash clients for fees earned during the period May 116, $8,360.

Record the following transactions on Page 6 of the journal:

May

20

Purchased supplies on account, $735.

21

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

25

Recorded cash from cash clients for fees earned for the period May 1723, $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

Paid electricity bill for May, $810.

31

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.

31

Kelly withdrew $10,500 for personal use.

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.

8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owners equity. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owners equity. Refer to the list Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or there is a decrease in owners equity, enter that amount as a negative number using a minus sign.

Kelly Consulting

Statement of Owners Equity

1
2
3
4
5

ccounts and the Labels and Amount Descriptions list for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Less: or Plus: will automatically appear if it is required.

Kelly Consulting

Balance Sheet

1

Assets

2

3

4

5

6

7

8

9

10

11

12

13

14

Liabilities

15

16

17

18

19

20

Owners Equity

21

22

10. Prepare a post-closing trial balance.

Kelly Consulting

POST-CLOSING TRIAL BALANCE

May 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Rent
5	Prepaid Insurance
6	Office Equipment
7	Accumulated Depreciation
8	Accounts Payable
9	Salaries Payable
10	Unearned Fees
11	Kelly Pitney, Capital
12	Totals