The post-closing trial balance as of April 30, 20Y8, is shown below: 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 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.) 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 Unearned Fees May 5: Received cash from clients on account, $2,450. Description Post. Ref. Debit Credit Cash Accounts Receivable May 9: Paid cash for a newspaper advertisement, $225. Description Post. Ref. Debit Credit Miscellaneous Expense Cash May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640. Description Post. Ref. Debit Credit Accounts Payable Cash May 15: Recorded services provided on account for the period May 1–15, $9,180. Description Post. Ref. Debit Credit Accounts Receivable Fees Earned 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 Salaries Payable Cash May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360. Description Post. Ref. Debit Credit Cash Fees Earned May 20: Purchased supplies on account, $735. Description Post. Ref. Debit Credit Supplies Accounts Payable May 21: Recorded services provided on account for the period May 16–20, $4,820. Description Post. Ref. Debit Credit Accounts Receivable 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 Fees Earned May 27: Received cash from clients on account, $9,520. Description Post. Ref. Debit Credit Cash Accounts Receivable May 28: Paid part-time receptionist for two weeks' salary, $750. Description Post. Ref. Debit Credit Salary Expense fill in the blank 71 fill in the blank 72 Cash fill in the blank 74 fill in the blank 75 May 30: Paid telephone bill for May, $260. Description Post. Ref. Debit Credit Miscellaneous Expense fill in the blank 77 fill in the blank 78 Cash fill in the blank 80 fill in the blank 81 May 31: Paid electricity bill for May, $810. Description Post. Ref. Debit Credit Miscellaneous Expense fill in the blank 83 fill in the blank 84 Cash fill in the blank 86 fill in the blank 87 May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300. Description Post. Ref. Debit Credit Cash fill in the blank 89 fill in the blank 90 Fees Earned fill in the blank 92 fill in the blank 93 May 31: Recorded services provided on account for the remainder of May, $2,650. Description Post. Ref. Debit Credit Accounts Receivable fill in the blank 95 fill in the blank 96 Fees Earned fill in the blank 98 fill in the blank 99 May 31: Paid dividends, $10,500. Description Post. Ref. Debit Credit Dividends fill in the blank 101 fill in the blank 102 Cash fill in the blank 104 fill in the blank 105 Comprehensive Problem 1 Part 2 and Part 3:
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.
The post-closing
| Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 |
|||
|---|---|---|---|
| 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 |
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.) 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 | |||
| Unearned Fees |
May 5: Received cash from clients on account, $2,450.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Cash | |||
| Accounts Receivable |
May 9: Paid cash for a newspaper advertisement, $225.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Miscellaneous Expense | |||
| Cash |
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Accounts Payable | |||
| Cash |
May 15: Recorded services provided on account for the period May 1–15, $9,180.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | |||
| Fees Earned |
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 | |||
| Salaries Payable | |||
| Cash |
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Cash | |||
| Fees Earned |
May 20: Purchased supplies on account, $735.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Supplies | |||
| Accounts Payable |
May 21: Recorded services provided on account for the period May 16–20, $4,820.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | |||
| 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 | |||
| Fees Earned |
May 27: Received cash from clients on account, $9,520.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Cash | |||
| Accounts Receivable |
May 28: Paid part-time receptionist for two weeks' salary, $750.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Salary Expense | fill in the blank 71 | fill in the blank 72 | |
| Cash | fill in the blank 74 | fill in the blank 75 |
May 30: Paid telephone bill for May, $260.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Miscellaneous Expense | fill in the blank 77 | fill in the blank 78 | |
| Cash | fill in the blank 80 | fill in the blank 81 |
May 31: Paid electricity bill for May, $810.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Miscellaneous Expense | fill in the blank 83 | fill in the blank 84 | |
| Cash | fill in the blank 86 | fill in the blank 87 |
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Cash | fill in the blank 89 | fill in the blank 90 | |
| Fees Earned | fill in the blank 92 | fill in the blank 93 |
May 31: Recorded services provided on account for the remainder of May, $2,650.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Accounts Receivable | fill in the blank 95 | fill in the blank 96 | |
| Fees Earned | fill in the blank 98 | fill in the blank 99 |
May 31: Paid dividends, $10,500.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| Dividends | fill in the blank 101 | fill in the blank 102 | |
| Cash | fill in the blank 104 | fill in the blank 105 |
Comprehensive Problem 1
Part 2 and Part 3:
The following is a comprehensive problem that 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.
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