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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Question

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

  1. 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.)

  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).

    1. Insurance expired during May is $275.

    2. Supplies on hand on May 31 are $715.

    3. Depreciation of office equipment for May is $330.

    4. Accrued receptionist salary on May 31 is $325.

    5. Rent expired during May is $1,600.

    6. Unearned fees on May 31 are $3,210.

  5. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.

  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

    Check Figure: Net income, $33,425

  9. 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.

  10. Prepare a post-closing trial balance.

Chapter Review
4-8j Comprehensive Problem 1
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:
Received cash from dients as an advance payment for services to
be provided and recorded it as unearned fees, $4,500.
May
3.
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 the
amount owed on April 30, $750.
Recorded cash from cash clients for fees earned during the period
May 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 May
17-23, $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 May
26-31, $3,300.
31. Recorded services provided on account for the remainder of May,
$2,650.
31. Paid dividends, $10,500.
Instructions
1. 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.)
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.
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 the
spreadsheet.
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. Indicate
closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.
Transcribed Image Text:Chapter Review 4-8j Comprehensive Problem 1 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: Received cash from dients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. May 3. 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 the amount owed on April 30, $750. Recorded cash from cash clients for fees earned during the period May 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 May 17-23, $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 May 26-31, $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Paid dividends, $10,500. Instructions 1. 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.) 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. 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 the spreadsheet. 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. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.
Exhibit 9
Chart of Accounts for Kelly Consulting
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
Exhibit 17
16 Prepaid Insurance
Kelly Consulting
Post-Closing Trial Balance
April 30, 20Y8
18 Office Equipment
19 Accumulated Depreciation
Debit
Balances
Credit
Balances
21 Accounts Payable
Account
No.
22 Salaries Payable
Cash.
11
22,100
23 Unearned Fees
Accounts Receivable
12
3,400
Supplies ...
Prepaid Rent
Prepaid Insurance..
Office Equipment.
Accumulated Depreciation
Accounts Payable..
Salaries Payable
31 Common Stock
14
1,350
15
3,200
32 Retained Earnings
16
1,500
33 Dividends
18
14,500
19
330
41 Fees Earned
21
800
51 Salary Expense
22
120
52 Rent Expense
Unearned Fees
23
2,500
30,000
12,300
Common Stock.
31
53 Supplies Expense
Retained Earnings
32
54 Depreciation Expense
46,050
46,050
55 Insurance Expense
59 Miscellaneous Expense
Transcribed Image Text:Exhibit 9 Chart of Accounts for Kelly Consulting 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent Exhibit 17 16 Prepaid Insurance Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 18 Office Equipment 19 Accumulated Depreciation Debit Balances Credit Balances 21 Accounts Payable Account No. 22 Salaries Payable Cash. 11 22,100 23 Unearned Fees Accounts Receivable 12 3,400 Supplies ... Prepaid Rent Prepaid Insurance.. Office Equipment. Accumulated Depreciation Accounts Payable.. Salaries Payable 31 Common Stock 14 1,350 15 3,200 32 Retained Earnings 16 1,500 33 Dividends 18 14,500 19 330 41 Fees Earned 21 800 51 Salary Expense 22 120 52 Rent Expense Unearned Fees 23 2,500 30,000 12,300 Common Stock. 31 53 Supplies Expense Retained Earnings 32 54 Depreciation Expense 46,050 46,050 55 Insurance Expense 59 Miscellaneous Expense
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