Question

1. Comprehensive Problem 1
   Part 1:

   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.

   Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below:

   11	Cash	32	Retained Earnings
   12	Accounts Receivable	33	Dividends
   14	Supplies	41	Fees Earned
   15	Prepaid Rent	51	Salary Expense
   16	Prepaid Insurance	52	Rent Expense
   18	Office Equipment	53	Supplies Expense
   19	Accumulated Depreciation	54	Depreciation Expense
   21	Accounts Payable	55	Insurance Expense
   22	Salaries Payable	59	Miscellaneous Expense
   23	Unearned Fees
   31	Common Stock

   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

2. May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.

3. May 5: Received cash from clients on account, $2,450.

4. May 9: Paid cash for a newspaper advertisement, $225.

5. May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.

6. May 15: Recorded services provided on account for the period May 1–15, $9,180.

7. May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.

8. May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.

9. May 20: Purchased supplies on account, $735.

10. May 21: Recorded services provided on account for the period May 16–20, $4,820.

11. May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.

12. May 27: Received cash from clients on account, $9,520.

13. May 28: Paid part-time receptionist for two weeks' salary, $750.

14. May 30: Paid telephone bill for May, $260.

15. May 31: Paid electricity bill for May, $810.

16. May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.

17. May 31: Recorded services provided on account for the remainder of May, $2,650.

18. May 31: Paid dividends, $10,500.

19. Part 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.

    Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2.

    a. Insurance expired during May is $275.

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

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

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

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

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

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

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

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

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

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

    Date	Account Name	Post. Ref.	Debit	Credit
    May 31

Answer 1

2019	Account Number	Account Name		Debit	Credit
Month-Day
May-3	11	Cash		4500
	23		Unearned fees		4500
		Cash received as advanced payment for services
May-5	11	Cash		2450
	12		Accounts receivable		2450
		Cash received from clients
May-9	59	Miscellaneous expenses		225
	11		Cash		225
		Cash paid for advertisement
May-13	21	Accounts payable		640
	11		Cash		640
		Payment to Office Station Co
May-15	12	Accounts receivable		9180
	41		Fees earned		9180
		Services provided on account
May-16	51	Salary expenses		375
	22	Salary payable		375
	11		Cash		750
		Salary payment to part time receptionist
May-17	11	Cash		8360
	12		Accounts receivable		8360
		Cash received from clients
May-20	14	Supplies		735
	11		Cash		735
		Purchase of supplies
May-21	12	Accounts receivable		4820
	41		Fees earned		4820
		Services provided on account
May-25	11	Cash		7900
	12		Fees earned		7900
		Cash received from clients
May-27	11	Cash		9520
	12		Accounts receivable		9520
		Cash received from clients
May-28	51	Salary expenses		750
	11		Cash		750
		Salary payment to part time receptionist
May-30	59	Miscellaneous expenses		260
	11		Cash		260
		Cash paid for telephone
May-31	59	Miscellaneous expenses		810
	11		Cash		810
		Cash paid for electricity
May-31	11	Cash		3300
	12		Fees earned		3300
		Cash received from clients
May-31	12	Accounts receivable		2650
	41		Fees earned		2650
		Services provided on account
May-31	33	Dividend		10500
	11		Cash		10500
		Dividend paid
May-31	55	Insurance expenses		275
	16		Prepaid insurance		275
		Entry for insurance expired
May-31	53	Supplies expense		20
	14		Supplies		20
		Being the entry for supplies used during the period
May-31	54	Depreciation expense		330
	19		Accumulated depreciation		300
		Depreciation of office equipment
May-31	51	Salary expense		325
	22		Salaries payable		325
		Accrued receptionist salary
May-31	52	Rent expense		1600
	15		Prepaid rent		1600
		Rent expired during May
May-31	23	Unearned feed		1290
	41		Fees earned		1290
		Being the portion of fees earned during the month