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 1-15, \$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. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the postclosing trial balance as of April 30, 20Y8, 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 1,20Y8, and place a check mark () 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. Print Preview 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 statement of stockholders' equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of 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. \begin{tabular}{|c|c|c|c|c|} \hline & JOURNAL & & & Page 5 \\ \hline Date & Desouiption & \begin{tabular}{l} Post. \\ Ref. \end{tabular} & Debit & Credir \\ \hline 20Y8 & & & & \\ \hline May 3 & Cash & & 4,500 & \\ \hline & Unearned Fees & & & 4.500 \\ \hline 5 & Cash & & 2.450 & \\ \hline & Accounts Receivable & & & 2.450 \\ \hline 9 & Miscelaneous Expense & & 225 & \\ \hline & Cash & & & 225 \\ \hline 13 & Accounts Payable & & 540 & \\ \hline & Cash & & & 640 \\ \hline 15 & Accounts Receivabie & & 2,180 & \\ \hline & Fees Earned & & & 9.180 \\ \hline 16 & Salary Expense. & & 375 & \\ \hline & Salaries Payable & & 375 & \\ \hline & Cash & & & TSO \\ \hline 17 & Cash & & 8,360 & \\ \hline & Fees Earned & & & 8.360 \\ \hline & JOUFNAL. & & & Page t \\ \hline Date & Desetiption & \begin{tabular}{l} Post. \\ Ref. \end{tabular} & Debit & Cindie \\ \hline 208 & & & & \\ \hline May 20 & Supplies & & 735 & \\ \hline & Accounts Payable & & & 735 \\ \hline 21 & Accounts Recelvable & & 4.820 & \\ \hline & Fees Earned & & & 4820 \\ \hline 25 & Cash & & 7,900 & \\ \hline & Fees Earned & & & 7900 \\ \hline 27 & Cash & & 9,520 & \\ \hline & Accounts Recelvabie & & & 9.520 \\ \hline 28 & Salary Expense & & 750 & \\ \hline & Cash & & & 750 \\ \hline 30 & Miscelaneous Expense & & 260 & \\ \hline & Cash & & & 260 \\ \hline 31 & Miscelaneous Expense & & 810 & \\ \hline & Cash & & & 810 \\ \hline 31 & Cash & & 3,300 & \\ \hline & Fees Earned & & & 3.300 \\ \hline 31 & Accounts Receivable & & 2,650 & \\ \hline & Fees Earned & & & 2.850 \\ \hline 31 & Dividends & & 10.500 & \\ \hline & Cash & & & 10,500 \\ \hline \end{tabular} 6. and 9. GENERAL LEDGER \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|l|}{ Cash } & \multicolumn{2}{|r|}{11} \\ \hline \multirow[b]{2}{*}{ Date } & & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Ref. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credit } & \multicolumn{2}{|c|}{ Balance } \\ \hline & Item & & & & Debit & Credit \\ \hline \multicolumn{7}{|l|}{20Y88} \\ \hline May 1 & Balance & & & & 22,100 & \\ \hline 3 & & & 4,500 & 4.500 & & \\ \hline 5 & & & & & & \\ \hline 9 & & & & & & \\ \hline 13 & & & & & & \\ \hline 16 & & & & & & \\ \hline 17 & & & & & & \\ \hline 25 & & & & & & \\ \hline 27 & & & & & & \\ \hline 28 & & & & & & \\ \hline 30 & & & & & & \\ \hline 31 & & & & & & \\ \hline 31 & & & & & & \\ \hline 31 & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accumulated Depreciation } & \multicolumn{2}{|r|}{19} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ hem } & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Pef. \end{tabular}} & \multirow[b]{2}{*}{ Debir } & \multirow[b]{2}{*}{ Credin } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Debir & Credir \\ \hline \multicolumn{7}{|l|}{20rs} \\ \hline Way 1 & Balance & & & & & 330 \\ \hline 31 & Adjusting & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Payable } & \multicolumn{2}{|r|}{21} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ hem } & \multirow{2}{*}{\begin{tabular}{l} Pont. \\ Pef \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credir } & \multicolumn{2}{|c|}{ Balanee } \\ \hline & & & & & Debie & Credit \\ \hline \multicolumn{7}{|l|}{20Y8} \\ \hline May 1 & Balance & & & & & 800 \\ \hline 13 & & & & & & \\ \hline 20 & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries Payable } & \multicolumn{2}{|r|}{22} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ Hem } & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Pef. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credir } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Derbitit & Credir \\ \hline \multicolumn{7}{|l|}{\begin{tabular}{l} Dire \\ 20V8 \end{tabular}} \\ \hline Way 1 & Balance & & & & & 120 \\ \hline 16 & & & & & & \\ \hline 31 & Adjusting & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Unearned Fees } & \multicolumn{2}{|r|}{23} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ Hem } & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Pef. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credir } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Deber & Credir \\ \hline \multicolumn{7}{|l|}{20Ys} \\ \hline Hay 1 & Balance & & & & & 2500 \\ \hline 3 & & & & & & \\ \hline 31 & Adjusting & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common Stock } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Balance }} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ Hem } & \multirow{2}{*}{\begin{tabular}{l} Post. \\ Ref. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credit } & & \\ \hline & & & & & Debit & Credit \\ \hline 20r8 & & & & & & \\ \hline Hay 1 & Balance & & & & & 30,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained Earnings } & \multicolumn{2}{|r|}{32} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ hem } & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Pef. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Creder } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Debir & Credir \\ \hline \multicolumn{7}{|l|}{20rs} \\ \hline May 1 & Balance & 3 & & & & 12,300 \\ \hline 31 & Closing & & & & & \\ \hline 31 & Closing & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Drvidends } & \multicolumn{2}{|r|}{33} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ hem: } & \multirow{2}{*}{\begin{tabular}{l} Post. \\ Ref. \end{tabular}} & \multirow[b]{2}{*}{ Debin } & \multirow[b]{2}{*}{ Credie } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Debin & Credir \\ \hline \multirow{2}{*}{\multicolumn{7}{|c|}{\begin{tabular}{l} 20r8 \\ Way 31 \end{tabular}}} \\ \hline & & & & & & \\ \hline 31 & Closing & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Fees Earned } & \multicolumn{2}{|r|}{41} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ Hem } & \multirow{2}{*}{\begin{tabular}{l} Post. \\ Pef \end{tabular}} & \multirow[b]{2}{*}{ Debir } & \multirow[b]{2}{*}{ Credir } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Debar & Credir. \\ \hline 20YB & & & & & & \\ \hline May 15 & & & & & & \\ \hline 17 & & & & & & \\ \hline 21 & & & & & & \\ \hline 25 & & & & & & \\ \hline 31 & & & & & & \\ \hline 31 & & & & & & \\ \hline 31 & Adjusting & & & & & \\ \hline 31 & Closing & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salary Expense } & \multicolumn{2}{|r|}{51} \\ \hline \multirow[b]{2}{*}{ Date } & \multirow[b]{2}{*}{ Item } & \multirow{2}{*}{\begin{tabular}{c} Post. \\ Ref. \end{tabular}} & \multirow[b]{2}{*}{ Debit } & \multirow[b]{2}{*}{ Credit } & \multicolumn{2}{|c|}{ Balance } \\ \hline & & & & & Debit & Credit \\ \hline 20Y8 & & & & & & \\ \hline May 16 & & & & & & \\ \hline 28 & & & & & & \\ \hline 31 & Adjusting & & & & & \\ \hline 31 & Closing & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{c} Kelly Consulting \\ Unadjusted Trial Balance \\ May 31,20Y8 \end{tabular}} \\ \hline & \begin{tabular}{l} Aoot. \\ No. \end{tabular} & \begin{tabular}{c} Debit \\ Balances \end{tabular} & \begin{tabular}{c} Credit \\ Balances \end{tabular} \\ \hline Cash & 11 & & \\ \hline Accounts Receivable & 12 & & \\ \hline Supplies & 14 & & \\ \hline Prepaid Rent & 15 & & \\ \hline Prepaid hsurance & 16 & & \\ \hline Office Equipment & 18 & & \\ \hline Accumulated Depreciation & 19 & & \\ \hline Accounts Payable & 21 & & \\ \hline Salaries Payable & 22 & & \\ \hline Unearned Fees & 23 & & \\ \hline Common Stock & 31 & & \\ \hline Retained Earnings & 32 & & \\ \hline Dividends & 33 & & \\ \hline Fees Earned & 41 & & \\ \hline Salary Expense & 51 & & \\ \hline Rent Expense & 52 & & \\ \hline Supplies Expense & 53 & & \\ \hline Depreciation Expense & 54 & & \\ \hline Insurance Expense & 55 & & \\ \hline Miscellaneous Expense & 59 & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Date } & \multicolumn{2}{|c|}{ JOUPASAL } & & \multirow[t]{2}{*}{ Page 7} \\ \hline & Desoription & \begin{tabular}{l} Post. \\ Pet. \end{tabular} & Debit & \\ \hline 208 & Adjusting Entries. & & & \\ \hline May 31 & & & & \\ \hline 31 & & & & \\ \hline 31 & & & & \\ \hline 31 & & & & \\ \hline 31 & & & & \\ \hline 31 & & & & \\ \hline & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{c} Kelly Consulting \\ Adjusted Trial Balance \\ May 31, 20ys \end{tabular}} \\ \hline & \begin{tabular}{l} Aoct. \\ No. \end{tabular} & \begin{tabular}{c} Debit \\ Balances \end{tabular} & \begin{tabular}{c} Credit \\ Balanoes \end{tabular} \\ \hline Cash & 11 & & \\ \hline Accounts Receivable & 12 & & \\ \hline Supplies & 14 & & \\ \hline Prepaid Rent & 15 & & \\ \hline Prepaid insurance & 16 & & \\ \hline Office Equipment & 18 & & \\ \hline Accumulated Depreciation & 19 & & \\ \hline Accounts Payable & 21 & & \\ \hline Salaries Payable & 22 & & \\ \hline Unearned Fees & 23 & & \\ \hline Common Stock & 31 & & \\ \hline Retained Earnings & 32 & & \\ \hline Dividends & 33 & & \\ \hline Fees Earned & 41 & & \\ \hline Salary Expense & 51 & & \\ \hline Rent Expense & 52 & & \\ \hline Supples Expense & 53 & & \\ \hline Depreciation Expense & 54 & & \\ \hline hsurance Expense & 55 & & \\ \hline Miscelaneous Expense & 59 & & \\ \hline \end{tabular} \begin{tabular}{l} Kelly Consulting \\ Statement of Stockholders' Equity \\ For the Month Ended May J1, 20Y8 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{l} Kelly Consulting \\ Post-Closing Trial Balance \\ May 31, zorg \end{tabular}} \\ \hline & \begin{tabular}{l} Aoet. \\ Na. \end{tabular} & \begin{tabular}{l} Debit \\ Balmees \end{tabular} & \begin{tabular}{l} Credie: \\ Bal imoers \end{tabular} \\ \hline Cash & 11 & & \\ \hline Accounts Receivasle & 12 & & \\ \hline Susples. & 14 & & \\ \hline Presaid Rent & 15 & & \\ \hline Prepaid insurance & 16 & & \\ \hline Office Equipment. & 18 & & \\ \hline Accumuated Depreciation & 19 & & \\ \hline Acecounts Payrable & 21 & & \\ \hline Selaries Payable & 22 & & \\ \hline Unearned Fets & 23 & & \\ \hline Common Stack. & 31 & & \\ \hline Retained Earnings & 32 & & \\ \hline \end{tabular}