Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. 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:

May

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

Kelly withdrew $10,500 for personal use.

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.

Kelly Consulting

POST-CLOSING TRIAL BALANCE

April 30, 2016

	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
7	Accumulated Depreciation		330.00
8	Accounts Payable		800.00
9	Salaries Payable		120.00
10	Unearned Fees		2,500.00
11	Kelly Pitney, Capital		42,300.00
12	Totals	46,050.00	46,050.00

X

Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.

Kelly Consulting

UNADJUSTED TRIAL BALANCE

May 31, 2016

ACCOUNT TITLE

DEBIT

CREDIT

1

Cash

2

Accounts Receivable

3

Supplies

4

Prepaid Rent

5

Prepaid Insurance

6

Office Equipment

7

Accumulated Depreciation

8

Accounts Payable

9

Salaries Payable

10

Unearned Fees

11

Kelly Pitney, Capital

12

Kelly Pitney, Drawing

13

Fees Earned

14

Salary Expense

15

Rent Expense

16

Supplies Expense

17

Depreciation Expense

18

Insurance Expense

19

Miscellaneous Expense

20

Totals

. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.

Kelly Consulting

ADJUSTED TRIAL BALANCE

May 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Rent
5	Prepaid Insurance
6	Office Equipment
7	Accumulated Depreciation
8	Accounts Payable
9	Salaries Payable
10	Unearned Fees
11	Kelly Pitney, Capital
12	Kelly Pitney, Drawing
13	Fees Earned
14	Salary Expense
15	Rent Expense
16	Supplies Expense
17	Depreciation Expense
18	Insurance Expense
19	Miscellaneous Expense
20	Totals