Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2015. 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 Provided services 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 Received cash from cash clients for fees earned during the period May 1-16, $8,360 May 20 21 25 27 Record the following transactions on Page 6 of the journal 20 Purchased supplies on account, $735. Provided services on account for the period May 16-20, $4,820. Received cash from cash clients for fees earned for the period May 17-23, $7,900. 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 Received cash from cash clients for fees earned for the period May 26-31, $3,300. 31 Provided services on account for the remainder of May, $2,650. 31 Kelly withdrew $10.500 for personal use. Instructions Required: 1 The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2015, 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 B. 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, 2015, enter Batance in the item column and enter Xin the Posting Reference column C. Journalize each of the May transactions in a two-column journal starting on Page 5 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. (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 Instructions 2. Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts A. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts B. Add the appropriate posting reference to the journal 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank 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 A Ontional On yourown.oooor.or.enmadehant. nnter the unadueted trial halsen on to column and of onnodenmondchant bank shoot and Instructions 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 Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded 6. A. Journalize the adjusting entries on Page 7 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 B. Post the adjusting entries to the ledger, inserting balances in the accounts affected C. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank 13 instructions 1 Cash Kelly Consulting POST-CLOSING TRIAL BALANCE April 30, 2015 ACCOUNT TITLE DEBIT 22,100.00 CREDIT Accounts Receivable Supplies Prepaid Rent 5 Prepaid Insurance 3,400.00 1,350.00 3,200,00 1,500.00 Office Equipment 14,500.00 1 Accumulated Depreciation 330.00 Instructions 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation Accounts Payable 9 Salaries Payable 1.500.00 14.500.00 330.00 800.00 120.00 10 Unearned Fees 2.500.00 11 Kelly Pitney, Capital 42,300,00 12 Totals 46,050.00 46.050.00 s Chart of Accounts CHART OF ACCOUNTS Kelly Consulting General Ledger 13 10 ASSETS 11 11 Cash 12 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense Instructions 5 Chart of Accounts DO 10 11 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Kelly Pitney. Capital rial Bala EQUITY 31 Kelly Pitney, Capital 32 Kelly Pitney, Drawing 1. C. Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal (Do not insert the account numbers in the journal at this time) 2 B. Add the appropriate posting reference to the journal in CengageNOW 6. A Journalize the adjusting entries on Page 7 of the journal 6. C. Add the appropriate posting reference to the journal in CengageNOW 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 Note: Scroll down for pages 6 and 7 of the journal DATE DESCRIPTION JOURNAL PAGE 5 POST. REF DEBIT CREDIT Journal 10 11 12 13 14 Journal DATE DESCRIPTION JOURNAL PAGE 6 POST REF DEBIT CREDIT Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Journal 10 11 < Journal 15 16 17 18 19 DATE DELCRIBITIO JOURNAL PAGE 7 BOLY BEE MERIT cacne X Journal DATE DESCRIPTION JOURNAL Adjusting Entries PAGE 7 POST REF DEBIT CREDIT K Journal 10 11 12 A Journal Ledger Dd fo Unadjusted Trial Balance 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank Pa 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent I Dressid Incuren Kelly Consulting UNADJUSTED TRIAL BALANCE May 31, 2015 ACCOUNT TITLE DEBIT CREDIT X edger Unadjusted Trial Balance Suppues 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 Kelly Pitney. Drawing 13 Fees Earned 13 X Unadjusted Trial Balance Dd 12 Kelly Pitney, Drawing fo 13 Fees Earned 24 Pa 14 Salary Expense 15 Rent Expense 16 Supplies Expense 17 Depreciation Expense 18 Insurance Expense 19 Miscellaneous Expense 20 Totals May Pa prob 13 faf ed. Adjusted Trial Balance 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent Kelly Consulting ADJUSTED TRIAL BALANCE May 31, 2015 ACCOUNT TITLE DEBIT CREDIT X 2 Adjusted Trial Balance 13 5 Prepaid Insurance 14 15 6 Office Equipment 7 Accumulated Depreciation 16 8 Accounts Payable 17 9 Salaries Payable 18 10 Unearned Fees 19 20 11 Kelly Pitney, Capital 12 Kelly Pitney, Drawing 13 Fees Earned 14 Salary Expense 13 Adjusted Trial Balance 12 Kelly Pitney, Drawing 13 Fees Earned 14 Salary Expense 15 Rent Expense 16 Supplies Expense 17 Depreciation Expense 18 Insurance Expense 19 Miscellaneous Expense 20 Totals X