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:May3.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 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 supplies 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.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 26–31, $3,300. 31.Recorded services provided on account for the remainder of May, $2,650. 31.Paid dividends, $10,500.InstructionsThe chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, 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, 20Y8, and place a check mark (✓) 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.)Post the journal to a ledger of four-column accounts.Prepare an unadjusted trial balance.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.Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal.Prepare an adjusted trial balance.Prepare an income statement, a statement of stockholders’ equity, and a balance sheet.AnswerCheck Figure: Net income, $33,425Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.Prepare a post-closing trial balance. Chapter Review4-8j Comprehensive Problem 1Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The accounting cyclefor Kelly Consulting for April, including financial statements, was illustrated in this chapter. DuringMay, Kelly Consulting entered into the following transactions:Received cash from dients as an advance payment for services tobe provided and recorded it as unearned fees, $4,500.May3.5.Received cash from dients 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.Recorded services provided on account for the period May 1–15,$9,180.15.16. Paid part-time receptionist for two weeks' salary including theamount owed on April 30, $750.Recorded cash from cash clients for fees earned during the periodMay 1-16, $8,360.17.Record the following transactions on Page 6 of the journal:20. Purchased supplies on account, $735.Recorded services provided on account for the period May 16–20,$4,820.21.25. Recorded cash from cash clients for fees earned for the period May17-23, $7,900.27.Received cash from dients 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 May26-31, $3,300.31. Recorded services provided on account for the remainder of May,$2,650.31. Paid dividends, $10,500.Instructions1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balanceas of April 30, 20Y8, is shown in Exhibit 17. For each account in the post-closing trial balance, enterthe balance in the appropriate Balance column of a four-column account. Date the balances May 1,20Y8, and place a check mark () in the Posting Reference column. Journalize each of the Maytransactions in a two-column journal starting on Page 5 of the journal and using Kelly Consulting'schart 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 tocomplete parts (5) and (6).a. Insurance expired during May is $275.b. Supplies on hand on May 31 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 $1,600.f. Unearned fees on May 31 are $3,210.5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete thespreadsheet.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 stockholders' equity, and a balance sheet.Answer +9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicateclosed accounts by inserting a line in both the Balance columns opposite the closing entry.10. Prepare a post-closing trial balance. Exhibit 9Chart of Accounts for Kelly Consulting11 Cash12 Accounts Receivable14 Supplies15 Prepaid RentExhibit 1716 Prepaid InsuranceKelly ConsultingPost-Closing Trial BalanceApril 30, 20Y818 Office Equipment19 Accumulated DepreciationDebitBalancesCreditBalances21 Accounts PayableAccountNo.22 Salaries PayableCash.1122,10023 Unearned FeesAccounts Receivable123,400Supplies ...Prepaid RentPrepaid Insurance..Office Equipment.Accumulated DepreciationAccounts Payable..Salaries Payable31 Common Stock141,350153,20032 Retained Earnings161,50033 Dividends1814,5001933041 Fees Earned2180051 Salary Expense2212052 Rent ExpenseUnearned Fees232,50030,00012,300Common Stock.3153 Supplies ExpenseRetained Earnings3254 Depreciation Expense46,05046,05055 Insurance Expense59 Miscellaneous Expense

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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 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 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 supplies 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. 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 26–31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Paid dividends, $10,500. Instructions The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, 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, 20Y8, and place a check mark (✓) 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.) Post the journal to a ledger of four-column accounts. Prepare an unadjusted trial balance. 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. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. Prepare an adjusted trial balance. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet. Answer Check Figure: Net income, $33,425 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 the Balance columns opposite the closing entry. Prepare a post-closing trial balance.

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 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 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 supplies 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. 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 26–31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Paid dividends, $10,500. Instructions The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, 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, 20Y8, and place a check mark (✓) 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.) Post the journal to a ledger of four-column accounts. Prepare an unadjusted trial balance. 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. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. Prepare an adjusted trial balance. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet. Answer Check Figure: Net income, $33,425 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 the Balance columns opposite the closing entry. Prepare a post-closing trial balance.

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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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 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.

	20.	Purchased supplies 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.	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 26–31, $3,300.
	31.	Recorded services provided on account for the remainder of May, $2,650.
	31.	Paid dividends, $10,500.