(Page 226)

"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 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. Provided services 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. Received cash from cash clients for fees earned during the period May 1-16, $8,360.

Record the following transactions on Page 6 of the journal:

20. Purchased supplies on account, $735.

21. Provided services on account for the period May 16-20, $4,820.

25. Received cash from cash clients for fees earned for the period May 17-23, $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. Received cash from cash clients for fees earned for the period May 26-31, $3,300.

31. Provided services on account for the remainder of May, $2,650.

31. Kelly withdrew $10,500 for personal use."

Instructions

1. The 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 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).
5. Insurance expired during May is $275.
6. Supplies on hand on May 31 are $715.
7. Depreciation of office equipment for May is $330.
8. Accrued receptionist salary on May 31 is $325.
9. Rent expired during May is $1,600.
10. Unearned fees on May 31 are $3,210."

(Page 227)

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 owner's 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."

Follow My instructions, not the book's instructions:

• Prepare journal entries for all the transactions listed on page 226 in

addition to the adjusting journal entries listed under # 4 in the instructions.

• Prepare a Balance Sheet as of May 31, 2019, and an, Income Statement and

Statement of Owner's Equity for the month of May 2019.

• Prepare Closing Journal entries.

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"

EXHIBIT 17

Post-Closing Trial Balance, Kelly Consulting

Kelly Consulting

Post-Closing Trial Balance

April 30, 2019

Account No. Debit Balances Credit Balances

Cash...............................................................................................11 22,100

AccountsReceivable..............................................................12 3,400

Supplies.......................................................................................14 1,350

Prepaid Rent..............................................................................15 3,200

Prepaid Insurance...................................................................16 1,500

Office Equipment....................................................................18 14,500

Accumulated Depreciation................................................19 330

Accounts Payable..................................................................21 800

Salaries Payable.....................................................................22 120

Unearned Fees........................................................................23 2,500

Kelly Pitney, Capital...............................................................31 42,300

46,050 46,050