Question

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

Part 1 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Part 2: Using the attached spreadsheet, post the journal entries from part 1 to a ledger of four-column accounts.

Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.

1. Kelly Consulting Unadjusted Trial Balance May 31, 20Y8
   Account Title	Debit Balances	Credit Balances

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.

Date	Account Name	Post. Ref.	Debit	Credit
May 31

Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.

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

1. Part 7:

   Kelly Consulting End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 20Y8
   	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
   Account Title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
   Cash
   Accounts Receivable
   Supplies
   Prepaid Rent
   Prepaid Insurance
   Office Equipment
   Accum. Depreciation
   Accounts Payable
   Salaries Payable
   Unearned Fees
   Common Stock
   Retained Earnings
   Dividends
   Fees Earned
   Salary Expense
   Rent Expense
   Supplies Expense
   Depreciation Expense
   Insurance Expense
   Miscellaneous Expense
   Net income

Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Kelly Consulting
Adjusted Trial Balance
May 31, 20Y8

Account Title

Debit Balances

Credit Balances                     

Part 8:

1. Prepare an income statement.

   Kelly Consulting Income Statement For the Month Ended May 31, 20Y8
   		$
   Expenses:
   	$
   		$

   Prepare a statement of stockholders’ equity. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

   Kelly Consulting Statement of Stockholders’ Equity For the Month Ended May 31, 20Y8
   	Common Stock	Retained Earnings	Total
   	$	$	$
   	$	$	$

   Prepare a balance sheet.

   Kelly Consulting Balance Sheet May 31, 20Y8
   Assets			Liabilities
   Current assets:			Current liabilities:
   	$			$
   			Total liabilities		$
   Total current assets		$
   Property, plant, and equipment:			Stockholders’ Equity
   	$			$
   Total property, plant, and equipment			Total stockholders’ equity
   Total assets		$	Total liabilities and stockholders’ equity		$

Part 9: Prepare the closing entries below. Then, using the attached spreadsheet from part 2, post the entries to your general ledger. If an amount box does not require an entry, leave it blank.

1. Date	Account Name	Post. Ref.	Debit	Credit
   20Y8	Closing Entries
   May 31

Part 10:

Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank.

Kelly Consulting Post-Closing Trial Balance May 31, 20Y8Account TitleDebit BalancesCredit Balances

Answer 1

PART 1

Journal entries

Date	ACCOUNT NAME	DEBIT	CREDIT
MAY 3	CASH A/C Dr	4500
	TO UNEARNED FEES		4500
MAY 5	CASH A/C Dr	2450
	TO ACCOUNTS RECEIVABLE		2450
MAY 9	ADVERTISEMENT A/C Dr	225
	TO CASH A/C		225
MAY 13	ACCOUNTS PAYABLE A/C Dr	640
	TO CASH A/C		640
MAY 15	ACCOUNTS RECEIVABLE A/C Dr	9180
	TO SERVICE REVENUE A/C		9180
MAY 16	SALARIES PAYABLE A/C Dr	120
	SALARIES A/C Dr	630
	TO CASH A/C		750
MAY 17	CASH A/C Dr	8360
	TO SERVICE REVENUE A/C		8360
MAY 20	SUPPLIES A/C Dr	735
	TO ACCOUNTS PAYABLE A/C		735
MAY 21	ACCOUNTS RECEIVABLE A/C Dr	4820
	TO SERVICE REVENUE A/C		4820
MAY 25	CASH A/C Dr	7900
	TO SERVICE REVENUE		7900
MAY 27	CASH A/C Dr	9520
	TO ACCOUNTS RECEIVABLE A/C		9520
MAY 28	SALARIES A/C Dr	750
	TO CASH A/C		750
MAY 30	MISCELLANOUS EXPENSE A/C Dr	260
	TO CASH A/C		260
	(FOR TELEPHONE BILL)
MAY 31	MISCELLANOUS EXPENSE A/C Dr	810
	TO CASH A/C		810
	(FOR ELECTRICITY BILL)
MAY 31	CASH A/C Dr	3300
	TO SERVICE REVENUE A/C		3300
MAY 31	ACCOUNTS RECEIVABLE A/C Dr	2650
	TO SERVICE REVENUE A/C		2650
MAY 31	RETAINED EARNINGS A/C Dr	10500
	TO CASH A/C		10500
	(FOR DIVIDENDS PAID)

PART 2 POSTING IN LEDGER

CASH ACCOUNT

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE (Dr)
MAY 01	BALANCE B/D		22100		22100
MAY 3	UNEARNED FEES		4500		26600
MAY 5	ACCOUNT RECEIVABLE		2450		29050
MAY 9	ADVERTISEMENT			225	28825
MAY 13	ACCOUNT PAYABLE			640	28185
MAY 16	SALARIES PAYABLE			120	28065
	SALARIES			630	27435
MAY 17	SERVICE REVENUE		8360		35795
MAY 25	SERVICE REVENUE		7900		43695
MAY 27	ACCOUNT RECEIVABLE		9520		53215
MAY 28	SALARIES			750	52465
MAY 30	MISCELLANOUS EXPENSE			260	52205
MAY 31	MISCELLANOUS EXPENSE			810	51395
MAY 31	SERVICE REVENUE		3300		54695
MAY 31	RETAINED EARNINGS			10500	44195

ACCOUNTS RECEIVABLE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 1	BALANCE b/d		3400		3400
MAY 5	CASH			2450	950
MAY 13	CASH		640		1590
MAY 15	SERVICE REVENUE		9180		10770
MAY 21	SERVICE REVENUE		4820		15590
MAY 27	CASH			9520	6070
MAY 31	SERVICE REVENUE		2650		8720

SUPPLIES ACCOUNT

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 1	BALANCE b/d		1350		1350
MAY 20	ACCOUNTS PAYABLE		735		2085

PREPAID RENT

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 1	BALANCE b/d		3200		3200

PREPAID INSURANCE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 1	BALANCE b/d		1500		1500

OFFICE EQUIPMENT

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 1	OFFICE EQUIPMENT		14500		14500

ACCUMULATED DEPRECIATION

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d			330	330

ACCOUNTS PAYABLE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d			800	800
MAY 13	CASH		640		160
MAY 20	SUPPLIES			735	895

SALARIES PAYABLE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d			120	120
MAY 16	CASH		120		0

UNEARNED FEES

DATE	ACCOUNT NAME	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d		2500	2500
MAY 3	CASH		4500	7000

COMMON STOCK

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d			30000	30000

RETAINED EARNINGS

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 1	BALANCE b/d			12300	12300
MAY 31	CASH		10500		1800

SERVICE REVENUE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Cr)
MAY 15	ACCOUNT RECEIVABLE			9180	9180
MAY 17	CASH			8360	17540
MAY 21	ACCOUNT RECEIVABLE			4820	22360
MAY 25	CASH			7900	30260
MAY 31	CASH			3300	33560
MAY 31	ACCOUNT RECEIVABLE			2650	36210

ADVERTISEMENT

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 9	CASH		225		225

MISCELLANOUS EXPENSE

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 30	CASH		260		260
MAY 31	CASH		810		1070

SALARIES A/C

DATE	ACCOUNT NAME	POST REF	DEBIT	CREDIT	BALANCE(Dr)
MAY 16	CASH		630		630
MAY 28	CASH		750		1380

PART 3: UNADJUSTED TRIAL BALANCE

KELLY CONSULTING

UNADJUSTED TRIAL BALANCES

MAY 31, 2018

ACCOUNT TITLE	DEBIT BALANCE	CREDIT BALANCE
CASH	44195
ACCOUNT RECEIVABLE	8720
SUPPLIES	2085
PREPAID RENT	3200
ADVERTISEMENT	225
PREPAID INSURANCE	1500
OFFICE EQUIPMENT	14500
SALARIES	1380
MISCELLANOUS EXPENSE	1070
ACCUMULATED DEPRECIATION		330
ACCOUNTS PAYABLE		895
SALARIES PAYABLE		0
UNEARNED FEES		7000
COMMON STOCK		30000
RETAINED EARNINGS		1800
SERVICE REVENUE		36210