Kelly Pitney began her consulting business, Kelly Consulting on April 1, 2019. The accounting cycle for Kelly consulting for April including financial statements was illustrated in this chapter. During May, Kelly Consulting entered in to the following transactions.

May 3. Received cash from clients as an advanced 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 their debt incurred on April 5, $640.

15 Provided services on account for the period May 1-15 $9180.

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 1-1, $8,360

Record the following transaction

20 purchased supplies on account $t35

21 provide services on account for the period May 16-20, $4820

25 received cash from cash clients for fees earned for the period May 17-23, $7,900

27 received cash from clients on account $9520

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 Provide services on account for the remainder of May $2650\

31 Kelly withdrew $10,500 for personal use

Instructions

1. Chart of accounts for Kelly Consulting is shown in Exhibit 9 and the post closing trial balance as of April 30,2019 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 1,2019, and place a checkmark in the post referencing column. Journalize each of the May transactions in a two column journal starting on page 5 of the journal and using Kelly Consulting Chart of accounts.

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 My 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 $1600

f unearned fees on May 31 are $3210

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 journal

7 prepare an adjusted trial balance

8 Prepare an income statement, a statement of owners 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 balance columns opposite the closing entry.

10. prepare a post closing trial balance..

Chapter 4 Completing the Accounting Cycle 185 Kelly Consulting Post-Closing Trial Balance April 30, 2019 EXHIBIT 1.7 Post-Closing Trial Balance, Keily Consulting Account No. Debit Credit Balances Balances 12 Cash Accounts Receivable .............. Supplies Prepaid Rent.................. Prepaid Insurance.................. Office Equipment .................... Accumulated Depreciation ............. Accounts Payable........... Salaries Payable................. Unearned Fees .............. Kelly Pitney, Capital................ 22,100 3,400 1,350 3,200 1,500 14,500 3301204 800 120 2,500 42,300 46,050 46,050 Ledger, Kelly Consulting EXHIBIT 18 Ledger Account Cash Account No. 1 Account Supplies Account No. 14 178 Chapter 4 Completing the Accounting Cycle EXHIBIT 9 Chart of Accounts for Kelly Consulting 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Kelly Pitney, Capital 32 Kelly Pitney, Drawing 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense Alter analyzing each of Kelly Consulting's transactions for April, the journal entries are recorded as shown in Exhibit 10. EXHIBIT 10 Journal Page 1 Journal Entries for April, Kelly Consulting Date Description Post. Ref. Debit Credit Cash 11 13,100 Accounts Receivable Supplies Office Equipment Kelly Pitney. Capital 3,000 1 400 12.500 Prepadllent 30,000 4.800