Kelly Pitney began her consulting business, Kelly Consulting, on
April 1, 2018. 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:
| May | 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. |
| Required: | |||||||||||||
| 1. | The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2018, is shown below.
|
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| 2. | Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts. Enter the appropriate Posting References in the journal and the ledger. No entry is necessary in the item column. |
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| 3. | Prepare an unadjusted trial balance. |
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| 4. | At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
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| 5. | (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. |
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| 6. |
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| 7. | Prepare an adjusted trial balance. |
Kelly Consulting
POST-CLOSING TRIAL BALANCE
April 30, 2018
| ACCOUNT TITLE |
DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
22,100.00 |
|
|
2 |
Accounts Receivable |
3,400.00 |
|
|
3 |
Supplies |
1,350.00 |
|
|
4 |
Prepaid Rent |
3,200.00 |
|
|
5 |
Prepaid Insurance |
1,500.00 |
|
|
6 |
Office Equipment |
14,500.00 |
|
|
7 |
Accumulated Depreciation |
330.00 |
|
|
8 |
Accounts Payable |
800.00 |
|
|
9 |
Salaries Payable |
120.00 |
|
|
10 |
Unearned Fees |
2,500.00 |
|
|
11 |
Common Stock |
30,000.00 |
|
|
12 |
Retained Earnings |
12,300.00 |
|
|
13 |
Dividends |
||
|
14 |
Income Summary |
||
|
15 |
Totals |
46,050.00 |
46,050.00 |
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