Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The account- ing cycle for Kelly Consulting for April, including financial statements, was

image text in transcribed
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The account- ing cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Recelved cash from clents as an advance payment for services jo be provided and recorded it as un- eamed fees, $4,500 May 3. 5. Received cash from clients on account, $2,450. 2 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 perlod May 1-15, $9,180. 6 Paid part-time receptionist for two weeks' salary including the amount owed on Apel 30, $750 17. Recorded cash from cash clients for fees eamed during the perlod May 1-16, s8,360. Recond tbe following transactions on Page 6 of tbe journal 20. Purchased supplies on account, $735 21. Racorded services provided on account for the period May 16-20, $4,820. 25. Recorded cash from cash clients for fees eamed for the period May 17-23, $7,900. 27. Recelved cash from clients an account, $9,520. 20. Paid part-time receptionist for two weeks salary, S750. 30. Paid telephone bill for May, $260. 31. Paid electricity bill for May, $810. 31. Recorded cash from cash dlients for fees eamed for the period May 26-31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,050 31. Paid dividends, $10,500. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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 ac- count. Date the balances May 1, 2018, and place a check mark ( in the Posting Refer- ence 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 Mayis $275. B) Supplies on hand on May 31 are $715 C) Depreciation of office equipment for May is $330 (D) Accrued receptionist sal ary on May 31 is $325. (E) Rent expired during May is $1,600. (F) Unearned fees on May 31 are $3,210 5. roptionay 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 joumal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The account- ing cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Recelved cash from clents as an advance payment for services jo be provided and recorded it as un- eamed fees, $4,500 May 3. 5. Received cash from clients on account, $2,450. 2 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 perlod May 1-15, $9,180. 6 Paid part-time receptionist for two weeks' salary including the amount owed on Apel 30, $750 17. Recorded cash from cash clients for fees eamed during the perlod May 1-16, s8,360. Recond tbe following transactions on Page 6 of tbe journal 20. Purchased supplies on account, $735 21. Racorded services provided on account for the period May 16-20, $4,820. 25. Recorded cash from cash clients for fees eamed for the period May 17-23, $7,900. 27. Recelved cash from clients an account, $9,520. 20. Paid part-time receptionist for two weeks salary, S750. 30. Paid telephone bill for May, $260. 31. Paid electricity bill for May, $810. 31. Recorded cash from cash dlients for fees eamed for the period May 26-31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,050 31. Paid dividends, $10,500. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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 ac- count. Date the balances May 1, 2018, and place a check mark ( in the Posting Refer- ence 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 Mayis $275. B) Supplies on hand on May 31 are $715 C) Depreciation of office equipment for May is $330 (D) Accrued receptionist sal ary on May 31 is $325. (E) Rent expired during May is $1,600. (F) Unearned fees on May 31 are $3,210 5. roptionay 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 joumal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

16th Global Edition

1292147989, 978-1292147987

More Books

Students also viewed these Accounting questions