Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y5. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into transactions. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

Kelly Consulting

ADJUSTED TRIAL BALANCE

May 31, 20Y5

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	44195
2	Accounts Receivable	8080
3	Supplies	715
4	Prepaid Rent	1600
5	Prepaid Insurance	1225
6	Office Equipment	14500
7	Accumulated Depreciation		660
8	Accounts Payable		895
9	Salaries Payable		325
10	Unearned Fees		3210
11	Kelly Pitney, Capital		42300
12	Kelly Pitney, Drawing	10500
13	Fees Earned		40000
14	Salary Expense	1705
15	Rent Expense	1600
16	Supplies Expense	1370
17	Depreciation Expense	330
18	Insurance Expense	275
19	Miscellaneous Expense	1295
20	Totals	87390	87390

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Prepare the closing entries on Page 8 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

8. Having completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. You will not need to enter colons (:) on the income statement.

8. Having 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. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

8. Having completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a balance sheet. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all values as positive amounts. When entering assets, enter them in order of liquidity.

10. Prepare a post-closing trial balance.

Kelly Consulting

POST-CLOSING TRIAL BALANCE

May 31, 20Y5

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