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: EXCEL TEMPLATI wice 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 1- 15. 59.180. 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 1-16. 58.360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, $735. 21. 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. Paid electricity bill for May, $810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Paid dividends. $10.500. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2018, and place a check mark (V) in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal and using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 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). 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. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. Answer Check Figure: Net income, $33,425 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. The chart of accounts for Kelly Consulting is as follows. 11 Cash 31 Kelly Pitney, Capital 12 Accounts Receivable B2 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 18 Office Equipment 52 Rent Expense 19 Accumulated Depreciation N 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense ME 22 Salaries Payable 55 Insurance Expense 23 Unearned Fees 59 Miscellaneous Expense _ Kelly Consulting Post-Closing Trial Balance April 30, 2018 Credit Debit Balances 22.100 Accounts Receivable...... Supplies ...... Prepaid Rent ... Prepaid Insurance........ Office Equipment... Accumulated Depreciat Accounts Payable Salaries Payable. Unearned Fees ...... Common Stock.. Retained Earnings 30,000 12.300 46,050 46,050
