Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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 5 3 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. Received cash from clients on account, $2,450. 9 Paid cash for a newspaper advertisement, $225. Paid Office Station Co. for part of the debt incurred on April 5, $640. Recorded services provided on account for the period May 1-15, $9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. 13 15 16 17 Record the following transactions on Page 6 of the journal: May 20 21 25 27 Purchased supplies on account, $735. Recorded services provided on account for the period May 16-20, $4,820. Recorded cash from cash clients for fees earned for the period May 17-23, $7,900. Received cash from clients on account, $9,520. Paid part-time receptionist for two weeks' salary, $750. Paid telephone bill for May, $260. Paid electricity bill for May, $810. 28 30 31 31 31 Recorded cash from cash clients for fees earned for the period May 26-31, $3,300. Recorded services provided on account for the remainder of May, $2,650. Paid dividends, $10,500. 31 Required: 1. The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2018, 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. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the four-column account. Date the balances May 1, enter Balance in the Item column and select a check mark in the Posting Reference column. B. Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (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. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 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). 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. select a check mark in the Posting Reference column. B. Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (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. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. 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). 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. 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. 6. A. Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles. B. Post the adjusting entries to the ledger. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column . 7. Prepare an adjusted trial balance. Kelly Consulting POST-CLOSING TRIAL BALANCE April 30, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 22,100.00 2 Accounts Receivable 3,400.00 3 Supplies 1,350.00 4. Prepaid Rent 3,200.00 5 Prepaid Insurance 1,500.00 6 Office Equipment 14,500.00 330.00 800.00 7 Accumulated Depreciation 8 Accounts Payable - Salaries Payable 10 Unearned Fees 120.00 2,500.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 13 Dividends 14 Income Summary 15 Totals 46,050.00 46,050.00 JOURNAL Score: 171/203 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 May 3' Cash 4,500.00 1 + Unearned Fees 2 4,500.00 + 3 May 5 Cash 2,450.00 4 Accounts Receivable 2,450.00 + 5 May 9' Miscellaneous Expense 225.00 + 6 Cash 225.00 + 7 May 13' Accounts Payable 640.00 + 00 Cash 640.00 + 9 May 15' Accounts Receivable 9,180.00 1 + 10 Fees Earned 9,180.00 11 May 16Salary Expense 630.00 + 12 Cash 750.00 + 13 May 17' Cash 8,360.00 1 + 14 Fees Earned 8,360.00 15 Income Summary 26,105.00 26,105.00 NAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY + 1 May 20 Supplies 14 735.00 + 2 21 735.00 3 + May 21 Accounts Payable Accounts Receivable Fees Earned 12 4,820.00 4 41 4,820.00 + + 5 May 25 Cash 11 7,900.00 6 Fees Earned 41 7,900.00 1 V 7 May 27 Cash 11 9,520.00 1 1 8 Accounts Receivable 12 9,520.00 9 May 28 Salary Expense 51 750.00 + 10 Cash 11 750.00 + 11 May 30 Miscellaneous Expense 59 260.00 12 Cash 11 260.00 + 13 May 31 Miscellaneous Expense 59 810.00 + 14 Cash 11 810.00 + 15 + May 31 Cash 11 3,300.00 16 Fees Earned 3,300.00 1 41 12 17 May 21 Arruntc Roraivahlo 2650 1 PAGE 7 JOURNAL Score: 55/163 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 May 31 Fees Earned 41 40,000.00 + 3 12 4,500.00 + May 3 Unearned Fees May 5 Accounts Receivable + 4 2,450.00 5 May 9 Miscellaneous Expense 59 225.00 1 6 May 13 Accounts Payable 640.00 1 7 May 16 Salary Expense 630.00 + 8 May 17 Fees Earned 41 8,360.00 1 9 41 7,900.00 + May 25 Fees Earned May 27 Accounts Receivable + 10 9,520.00 11 May 28 Salary Expense 750.00 + 12 May 30 Miscellaneous Expense 59 260.00 13 May 31 Miscellaneous Expense 59 810.00 + ADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 44,195.00 2 Accounts Receivable 8,080.00 715.00 3 Supplies 4 Prepaid Rent 1,600.00 1,225.00 5 Prepaid Insurance 6 Office Equipment 14,500.00 660.00 895.00 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 10 Unearned Fees 325.00 3,210.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 13 Dividends 10,500.00 14 Fees Earned 15 Salary Expense 1,380.00 16 Rent Expense 1,600.00 895.00 8 Accounts Payable 9 Salaries Payable 325.00 10 Unearned Fees 3,210.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 13 Dividends 10,500.00 14 Fees Earned 15 Salary Expense 1,380.00 16 Rent Expense 1,600.00 1,370.00 17 Supplies Expense 18 Depreciation Expense 330.00 19 Insurance Expense 275.00 20 Miscellaneous Expense 1,295.00 21 Totals 86,735.00 87,390.00 Points: 19.61 / 22