Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. 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:

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. Paid dividends, $10,500.

Instructions

1. (Deleted)

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).

1. Insurance expired during May is $275.

2. Supplies on hand on May 31 are $715.

3. Depreciation of office equipment for May is $330.

4. Accrued receptionist salary on May 31 is $325.

5. Rent expired during May is $1,600.

6. Unearned fees on May 31 are $3,210.

5. (Deleted)

6. Journalize and post the adjusting entries. Record the adjusting entries in the journal.

7. Prepare an adjusted trial balance.

8. Prepare an income statement, a statement of stockholders equity, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries in the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.

10. Prepare a post-closing trial balance.