Comprehensive Problem 1Part 1:The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The chart of accounts for Kelly Consulting is shown below:11Cash32Retained Earnings12Accounts Receivable33Dividends14Supplies34Income Summary15Prepaid Rent41Fees Earned16Prepaid Insurance51Salary Expense18Office Equipment52Rent Expense19Accumulated Depreciation53Supplies Expense21Accounts Payable54Depreciation Expense22Salaries Payable55Insurance Expense23Unearned Fees59Miscellaneous Expense31Common Stock The post-closing trial balance as of April 30, 2018, is shown below:Kelly ConsultingPost-Closing Trial BalanceApril 30, 2018 Account No.DebitCreditCash1122,100 Accounts Receivable123,400 Supplies141,350 Prepaid Rent153,200 Prepaid Insurance161,500 Office Equipment1814,500 Accumulated Depreciation19 330Accounts Payable21 800Salaries Payable22 120Unearned Fees23 2,500Common Stock31 30,000Retained Earnings32 12,300 46,05046,050Required:Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. DescriptionPost. Ref.DebitCreditCash vUnearned Fees vMay 5: Received cash from dients on account, $2,45o.DescriptionPost. Ref.DebitCreditCash vAccounts Receivable vMay 9: Paid cash for a newspaper advertisement, $225.DescriptionPost. Ref.DebitCreditMiscellaneous Expense vCash vMay 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.DescriptionPost. Ref.DebitCreditAccounts Payable vCash vMay 15: Recorded services provided on account for the period May 1-15, $9,180.DescriptionPost. Ref.DebitCreditAccounts Receivable vFees Earned vMay 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.DescriptionPost. Ref.DebitCreditSalary Expense vSalaries Payable vCash vMay 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.DescriptionPost. Ref.DebitCreditCash vFees Earned vMay 20: Purchased supplies on account, $735.DescriptionPost. Ref.DebitCreditSupplies vAccounts Payable vMay 21: Recorded services provided on account for the period May 16-20, $4,820.DescriptionPost. Ref.DebitCreditAccounts Receivable vFees Earned May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.DescriptionPost. Ref.DebitCreditCash vFees Earned vMay 27: Received cash from clients on account, $9,520.DescriptionPost. Ref.DebitCreditCash vAccounts Receivable vMay 28: Paid part-time receptionist for two weeks" salary, $750.DescriptionPost. Ref.DebitCreditSalary Expense vCash vMay 30: Paid telephone bill for May, $260.DescriptionPost. Ref.DebitCreditMiscellaneous ExpenseCash vMay 31: Paid electricity bill for May, $810.DescriptionPost. Ref.DebitCreditMiscellaneous Expense vCash vMay 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.DescriptionPost. Ref.DebitCreditCash vFees Earned vMay 31: Recorded services provided on account for the remainder of May, $2,650.DescriptionPost. Ref.DebitCreditAccounts Receivable vFees Earned vMay 31: Paid dividends, $10,500.DescriptionPost. Ref.DebitCreditDividends vCash v

The journal entries are prepared to keep the record of day to day transactions of the business.

Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The chart of accounts for Kelly Consulting is shown below: 11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 14 Supplies 34 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 18 Office Equipment 52 Rent Expense 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 22 Salaries Payable 55 Insurance Expense 23 Unearned Fees 59 Miscellaneous Expense 31 Common Stock The post-closing trial balance as of April 30, 2018, is shown below: Kelly Consulting Post-Closing Trial Balance April 30, 2018 Account No. Debit Credit Cash 11 22,100 Accounts Receivable 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 Common Stock 31 30,000 Retained Earnings 32 12,300 46,050 46,050 Required: Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank. May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Comprehensive Problem 1
Part 1:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The chart of accounts for Kelly Consulting is shown below:

11	Cash	32	Retained Earnings
12	Accounts Receivable	33	Dividends
14	Supplies	34	Income Summary
15	Prepaid Rent	41	Fees Earned
16	Prepaid Insurance	51	Salary Expense
18	Office Equipment	52	Rent Expense
19	Accumulated Depreciation	53	Supplies Expense
21	Accounts Payable	54	Depreciation Expense
22	Salaries Payable	55	Insurance Expense
23	Unearned Fees	59	Miscellaneous Expense
31	Common Stock

The post-closing trial balance as of April 30, 2018, is shown below:

Kelly Consulting Post-Closing Trial Balance April 30, 2018
	Account No.	Debit	Credit
Cash	11	22,100
Accounts Receivable	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
Common Stock	31		30,000
Retained Earnings	32		12,300
		46,050	46,050

Required:

Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.

May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.

Description
Post. Ref.
Debit
Credit
Cash v
Unearned Fees v
May 5: Received cash from dients on account, $2,45o.
Description
Post. Ref.
Debit
Credit
Cash v
Accounts Receivable v
May 9: Paid cash for a newspaper advertisement, $225.
Description
Post. Ref.
Debit
Credit
Miscellaneous Expense v
Cash v
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
Description
Post. Ref.
Debit
Credit
Accounts Payable v
Cash v
May 15: Recorded services provided on account for the period May 1-15, $9,180.
Description
Post. Ref.
Debit
Credit
Accounts Receivable v
Fees Earned v
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
Description
Post. Ref.
Debit
Credit
Salary Expense v
Salaries Payable v
Cash v
May 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.
Description
Post. Ref.
Debit
Credit
Cash v
Fees Earned v
May 20: Purchased supplies on account, $735.
Description
Post. Ref.
Debit
Credit
Supplies v
Accounts Payable v
May 21: Recorded services provided on account for the period May 16-20, $4,820.
Description
Post. Ref.
Debit
Credit
Accounts Receivable v
Fees Earned

May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.
Description
Post. Ref.
Debit
Credit
Cash v
Fees Earned v
May 27: Received cash from clients on account, $9,520.
Description
Post. Ref.
Debit
Credit
Cash v
Accounts Receivable v
May 28: Paid part-time receptionist for two weeks" salary, $750.
Description
Post. Ref.
Debit
Credit
Salary Expense v
Cash v
May 30: Paid telephone bill for May, $260.
Description
Post. Ref.
Debit
Credit
Miscellaneous Expense
Cash v
May 31: Paid electricity bill for May, $810.
Description
Post. Ref.
Debit
Credit
Miscellaneous Expense v
Cash v
May 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.
Description
Post. Ref.
Debit
Credit
Cash v
Fees Earned v
May 31: Recorded services provided on account for the remainder of May, $2,650.
Description
Post. Ref.
Debit
Credit
Accounts Receivable v
Fees Earned v
May 31: Paid dividends, $10,500.
Description
Post. Ref.
Debit
Credit
Dividends v
Cash v

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