8 Net income. $31,425Kelly Pitney began her consulting business. Kelly Consulting, on April 1,20Y8. The accounting cycle for Kelly Consulting for April, includingfinancial statements, was illustrated in this chapter During May, KellyConsulting entered into the following transactions: May 3. Received cash from clients as an advance payment for servicesto be provided and recorded it as unearned tree $4,5005. Received cash from clients on account $2,450.9. Paid cash for a newspaper advertisement $225.13. Raid Office Station Co for part of the debt incurred on April $,$640. 15. Recorded services provided on account for the period May 1-15, $9,18016 Paid part-time receptionist for two weeks' salary including theamount owed on April 30, $750.17. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. Record the following transactions on Page6 of the Journal20. Purchased support on account $73521. Recorded services provided on account for the period May 16-20. $4,82025. Recorded cash from cash clients for fees earned for the period May 17-23, $7,90027. Received cash from clients on account $9,520.28. Paid part-time receptionist for two weeks' salary. $750.30. Raid telephone bill for May. $26031. Paid electricity bill for May, $810.31. Recorded cash from cash clients tor lees earned for the period May 20-31. $3,300.31. Recorded services provided on account for the remainder ofMay, $2,650.31. Paid dividends $10,500 Instructions1. The chart of accounts foe Kelly Consulting is shown usExhibit 9. and the post-closing trial balance as of April 30, 20Y8, isshown in Exhibit 17. for each account in the post-closing trialbalance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1. 20Y8. and place acheck mark (V) in the Posting Reference column. Journalize eachof the May transactions in a two-column journal starting cm Page $of the journal and using Kelly Consulting's chart of accounts. (Donot insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts.5. Prepare an unadjusted trial balance.4. At the end of May, the following adjustment data wereassembled. Analyze and use these data to complete parts (5) and (6). (a) Insurance expired during May is $275.(b) Supplies on hand on May II 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 $3,210 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet6. Journalize and post the adjusting entries. Record the adjustingentries on Page 7 of the journal.7. Prepare an adjusted trial balance.3. Prepare an income statement, a statement of stockholders equity, and a balance sheet.9. Prepare and post the closing entries. Record the closing entrieson Page 8 of the journal. Indicate closed accounts by inserting aline in both the Balance columns opposite the closing entry.10. Prepare a post-closing trial balance.
8 Net income. $31,425
Kelly Pitney began her consulting business. Kelly Consulting, on April 1,
20Y8. 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 tree $4,500
5. Received cash from clients on account $2,450.
9. Paid cash for a newspaper advertisement $225.
13. Raid Office Station Co for part of the debt incurred on April $,
$640.
15. Recorded services provided 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. Recorded 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 support on account $735
21. Recorded services provided on account for the period May 16-
20. $4,820
25. Recorded 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. Raid telephone bill for May. $260
31. Paid electricity bill for May, $810.
31. Recorded cash from cash clients tor lees earned for the period May 20-31. $3,300.
31. Recorded services provided on account for the remainder of
May, $2,650.
31. Paid dividends $10,500
Instructions
1. The chart of accounts foe Kelly Consulting is shown us
Exhibit 9. and the post-closing
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. 20Y8. and place a
check mark (V) in the Posting Reference column. Journalize each
of the May transactions in a two-column journal starting cm Page $
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.
5. 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 May II are $715.
(c)
(d) Accrued receptionist salary on May 31 is $325.
(e) Rent expired during May is $1600.
(f) Unearned fees on May 31 are $3,210
5. (Optional) Enter the unadjusted trial balance on an end-of-
period spreadsheet and complete the spreadsheet
6. Journalize and post the
entries on Page 7 of the journal.
7. Prepare an adjusted trial balance.
3. Prepare an income statement, a statement of
equity, and a
9. Prepare and
on Page 8 of the journal. Indicate closed accounts by inserting a
line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.
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