ehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting,
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Question
ehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The a counting cycle for Kelly Consulting for April, including financial statements, was ilust 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 rated 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. Provided services 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. Received 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. Provided services on account for the period May 16-20, $4,820. 25. Received 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. Received cash from cash clients for fees earned for the period May 26-31, $3,300. 31. Provided services on account for the remainder of May, $2,650. 31. Kelly withdrew $10,500 for personal use. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2019, 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, 2019, 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.) 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 to complete parts (5) and (6) a. Insurance expired during May is $275. b. Supplies on hand on May 31 are $715.Explanation / Answer
Journal and Closing Journal Entries:
Ledger:
Unadjusted and adjusted Trial Balance:
Income Statement:
S No Date Account Debit Credit 1 May 1 Cash 4500 1 May 1 Unearned Fees 4500 2 May 5 Cash 2450 2 May 5 Accounts Receivable 2450 3 May 9 Miscellaneous Expense 225 3 May 9 Cash 225 4 May 13 Accounts Payable 640 4 May 13 Cash 640 5 May 15 Accounts Receivable 9180 5 May 15 Earned Fee Revenue 9180 6 May 16 Salaries Expense 750 6 May 16 Cash 750 7 May 17 Cash 8360 7 May 17 Earned Fee Revenue 8360 8 May 20 Supplies 735 8 May 20 Accounts Payable 735 9 May 21 Accounts Receivable 4820 9 May 21 Earned Fee Revenue 4820 10 May 25 Cash 7900 10 May 25 Earned Fee Revenue 7900 11 May 27 Cash 9520 11 May 27 Accounts Receivable 9520 12 May 28 Salaries Expense 750 12 May 28 Cash 750 13 May 30 Miscellaneous Expense 260 13 May 30 Cash 260 14 May 31 Miscellaneous Expense 810 14 May 31 Cash 810 15 May 31 Cash 3300 15 May 31 Earned Fee Revenue 3300 16 May 31 Accounts Receivable 2650 16 May 31 Earned Fee Revenue 2650 17 May 31 Kelly's Withdrawal 1650 17 May 31 Cash 1650 Closing Entries 1 May 31 Insurance Expense 275 1 May 31 Prepaid Insurance 275 2 May 31 Supply Expense 735-715 20 2 May 31 Supplies 20 3 May 31 Depreciation Expense 330 3 May 31 Accumulated Depcreciation 330 4 May 31 Salaries Expense 325 4 May 31 Salaries Payable 325 5 Apr 30 Rent Expense 1600 5 Apr 30 Prepaid Rent 1600 6 Apr 30 Unearned Fees 4500-3210 1290 6 Apr 30 Earned Fee Revenue 1290Related Questions
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