Part 1 Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 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 Part 2 and Part 3: 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. Note: You must complete part 1 before completing parts 2 and 3. Part 2: Using the attached spreadsheet, post the journal entries from part 1 to a ledger of four-column accounts. Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. Kelly Consulting Unadjusted Trial Balance May 31, 20Y8 Account Title Debit Balances Credit Balances Accounts Payable Accumulated Depreciation Cash Common Stock Salary Expense Cash fill in the blank 2 fill in the blank 3 Accounts Receivable Accumulated Depreciation Retained Earnings Rent Expense Salaries Payable Accounts Receivable fill in the blank 5 fill in the blank 6 Fees Earned Miscellaneous Expense Supplies Supplies Expense Unearned Fees Supplies fill in the blank 8 fill in the blank 9 Accumulated Depreciation Common Stock Prepaid Rent Rent Expense Salaries Payable Prepaid Rent fill in the blank 11 fill in the blank 12 Accounts Payable Insurance Expense Retained Earnings Prepaid Insurance Unearned Fees Prepaid Insurance fill in the blank 14 fill in the blank 15 Accumulated Depreciation Common Stock Office Equipment Salaries Payable Supplies Expense Office Equipment fill in the blank 17 fill in the blank 18 Accounts Receivable Accumulated Depreciation Cash Depreciation Expense Office Equipment Accumulated Depreciation fill in the blank 20 fill in the blank 21 Accounts Payable Cash Office Equipment Rent Expense Retained Earnings Accounts Payable fill in the blank 23 fill in the blank 24 Accounts Receivable Fees Earned Office Equipment Salaries Payable Salary Expense Salaries Payable fill in the blank 26 fill in the blank 27 Cash Fees Earned Miscellaneous Expense Office Equipment Unearned Fees Unearned Fees fill in the blank 29 fill in the blank 30 Accounts Payable Common Stock Insurance Expense Office Equipment Prepaid Rent Common Stock fill in the blank 32 fill in the blank 33 Accounts Receivable Accumulated Depreciation Retained Earnings Salaries Payable Unearned Fees Retained Earnings fill in the blank 35 fill in the blank 36 Accounts Receivable Accumulated Depreciation Dividends Salaries Payable Unearned Fees Dividends fill in the blank 38 fill in the blank 39 Accounts Receivable Cash Fees Earned Office Equipment Unearned Fees Fees Earned fill in the blank 41 fill in the blank 42 Accounts Receivable Common Stock Salaries Payable Salary Expense Unearned Fees Salary Expense fill in the blank 44 fill in the blank 45 Accounts Payable Accumulated Depreciation Prepaid Rent Rent Expense Salaries Payable Rent Expense fill in the blank 47 fill in the blank 48 Accumulated Depreciation Prepaid Insurance Salaries Payable Supplies Supplies Expense Supplies Expense fill in the blank 50 fill in the blank 51 Accounts Receivable Accumulated Depreciation Common Stock Depreciation Expense Unearned Fees Depreciation Expense fill in the blank 53 fill in the blank 54 Accounts Payable Insurance Expense Prepaid Insruance Salaries Payable Unearned Fees Insurance Expense fill in the blank 56 fill in the blank 57 Cash Common Stock Miscellaneous Expense Retained Earnings Unearned Fees Miscellaneous Expense fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62 Enter the remainder of the ledger: Cash 5/1 Balance – DR 22,100 Accounts Receivable 5/1 Balance DR 3,400 Supplies 5/1 DR 1350 Prepaid Rent 5/1 Balance Dr 3,200 Prepaid Insurance 5/1 DR- 1500 Office Equipment 5/1 Balance DR 14,500 Accumulated Depreciation 5/1 Balance Cr 330 Accounts Payable 5/1 Balance Cr 800 Salaries Payable 5/1 Cr 120 Unearned Fees 5/1 Balance Cr 2500 Common Stock 5/1 Balance Cr 12,300 Dividends Blank Income Statement Accounts: Fees Earned, Salary Expenses, Rent Expenses, Supplies Expenses, Depreciation Expenses, Insurance Expenses, Miscellaneous Expenses.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Part 1
|
Kelly Consulting |
|||
|
|
Account No. |
Debit |
Credit |
|
Cash |
11 |
22,100 |
|
|
|
12 |
3,400 |
|
|
Supplies |
14 |
1,350 |
|
|
Prepaid Rent |
15 |
3,200 |
|
|
Prepaid Insurance |
16 |
1,500 |
|
|
Office Equipment |
18 |
14,500 |
|
|
|
19 |
|
330 |
|
Accounts Payable |
21 |
|
800 |
|
Salaries Payable |
22 |
|
120 |
|
Unearned Fees |
23 |
|
2,500 |
|
Common Stock |
31 |
|
30,000 |
|
|
32 |
|
12,300 |
|
|
|
|
|
|
|
|
46,050 |
46,050 |
Part 2 and Part 3:
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. Note: You must complete part 1 before completing parts 2 and 3.
Part 2: Using the attached spreadsheet,
Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
|
Kelly Consulting |
||
|
Account Title |
Debit Balances |
Credit Balances |
|
Accounts Payable Accumulated Depreciation Cash Common Stock Salary Expense Cash |
fill in the blank 2 |
fill in the blank 3 |
|
Accounts Receivable Accumulated Depreciation Retained Earnings Rent Expense Salaries Payable Accounts Receivable |
fill in the blank 5 |
fill in the blank 6 |
|
Fees Earned Miscellaneous Expense Supplies Supplies Expense Unearned Fees Supplies |
fill in the blank 8 |
fill in the blank 9 |
|
Accumulated Depreciation Common Stock Prepaid Rent Rent Expense Salaries Payable Prepaid Rent |
fill in the blank 11 |
fill in the blank 12 |
|
Accounts Payable Insurance Expense Retained Earnings Prepaid Insurance Unearned Fees Prepaid Insurance |
fill in the blank 14 |
fill in the blank 15 |
|
Accumulated Depreciation Common Stock Office Equipment Salaries Payable Supplies Expense Office Equipment |
fill in the blank 17 |
fill in the blank 18 |
|
Accounts Receivable Accumulated Depreciation Cash Depreciation Expense Office Equipment Accumulated Depreciation |
fill in the blank 20 |
fill in the blank 21 |
|
Accounts Payable Cash Office Equipment Rent Expense Retained Earnings Accounts Payable |
fill in the blank 23 |
fill in the blank 24 |
|
Accounts Receivable Fees Earned Office Equipment Salaries Payable Salary Expense Salaries Payable |
fill in the blank 26 |
fill in the blank 27 |
|
Cash Fees Earned Miscellaneous Expense Office Equipment Unearned Fees Unearned Fees |
fill in the blank 29 |
fill in the blank 30 |
|
Accounts Payable Common Stock Insurance Expense Office Equipment Prepaid Rent Common Stock |
fill in the blank 32 |
fill in the blank 33 |
|
Accounts Receivable Accumulated Depreciation Retained Earnings Salaries Payable Unearned Fees Retained Earnings |
fill in the blank 35 |
fill in the blank 36 |
|
Accounts Receivable Accumulated Depreciation Dividends Salaries Payable Unearned Fees Dividends |
fill in the blank 38 |
fill in the blank 39 |
|
Accounts Receivable Cash Fees Earned Office Equipment Unearned Fees Fees Earned |
fill in the blank 41 |
fill in the blank 42 |
|
Accounts Receivable Common Stock Salaries Payable Salary Expense Unearned Fees Salary Expense |
fill in the blank 44 |
fill in the blank 45 |
|
Accounts Payable Accumulated Depreciation Prepaid Rent Rent Expense Salaries Payable Rent Expense |
fill in the blank 47 |
fill in the blank 48 |
|
Accumulated Depreciation Prepaid Insurance Salaries Payable Supplies Supplies Expense Supplies Expense |
fill in the blank 50 |
fill in the blank 51 |
|
Accounts Receivable Accumulated Depreciation Common Stock Depreciation Expense Unearned Fees Depreciation Expense |
fill in the blank 53 |
fill in the blank 54 |
|
Accounts Payable Insurance Expense Prepaid Insruance Salaries Payable Unearned Fees Insurance Expense |
fill in the blank 56 |
fill in the blank 57 |
|
Cash Common Stock Miscellaneous Expense Retained Earnings Unearned Fees Miscellaneous Expense |
fill in the blank 59 |
fill in the blank 60 |
|
|
fill in the blank 61 |
fill in the blank 62 |
Enter the remainder of the ledger:
Cash
5/1 Balance – DR 22,100
Accounts Receivable
5/1 Balance DR 3,400
Supplies
5/1 DR 1350
Prepaid Rent
5/1 Balance Dr 3,200
Prepaid Insurance
5/1 DR- 1500
Office Equipment
5/1 Balance DR 14,500
Accumulated Depreciation
5/1 Balance Cr 330
Accounts Payable
5/1 Balance Cr 800
Salaries Payable
5/1 Cr 120
Unearned Fees
5/1 Balance Cr 2500
Common Stock
5/1 Balance Cr 12,300
Dividends
Blank
Income Statement Accounts: Fees Earned, Salary Expenses, Rent Expenses, Supplies Expenses, Depreciation Expenses, Insurance Expenses, Miscellaneous Expenses.
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