ACCOUNTING 1A ASSIGNMENT PAPER
Chart of Accounts for Kelly Consulting
|11 Cash||32 Retained Earnings|
|12 Accounts Receivable||33 Dividends|
|14 Supplies||34 Income Summary|
|15 Prepaid Rent||41 Fees Earned|
|16 Prepaid Insurance||51 Salary Expense|
|18 Office Equipment||52 Rent Expense|
|19 Accumulated Depreciation||53 Supplies Expense|
|21 Accounts Payable||54 Depreciation Expense|
|22 Salaries Payable||55 Insurance Expense|
|23 Unearned Fees||59 Miscellaneous Expense|
|31 Common Stock|
Kelly Pitney began her consulting business, Kelly Consulting, P.C. on April 1, 2018. The accounting cycle for Kelly consulting for April, including financial statements, was illustrated on pages 163-173. 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 receptionists for two weeks’ salary including the amount owed on April 30, $750.
17. Recorded cash from clients for fees earned during the period May 1-16,
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,
27. Received cash from clients on account, $9,520.
28. Paid part-time receptionist for two week 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,
31. Recorded services provided on account for the remainder of May, $2,650.
31. Paid dividends of $10,500.
1. The chart of accounts for Kelly Consulting is shown on page 173, and the post-closing trial balance as of April 30, 2018 is shown on page 180. For each account in the postclosing trial balance, enter the balance in the appropriate balance column of a fourcolumn account. Date the balances May 1, 2018, and place a check mark (√ ) in the Posting Reference column.
2. Journalize each of the May’s 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).
3. Post the journal to a ledger of four column accounts. (General Ledgers)
4. Prepare an unadjusted trial balance.
5. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Insurance expired during May 275
b) Supplies on hand on May 31 715
c) Depreciation of office equipment for May is 330
d) Accrued receptionist salary on May 31: 325
e) Rent expired during May is 1,600
f) Unearned fees on May 31 are 3,210
6. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (Work sheet), and complete the spreadsheet.
7. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal.
8. Prepare an adjusted trial balance.
9. Prepare an income statement, a retained earnings statement, and a balance sheet.
10. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #34 in the chart of accounts) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
11. Prepare a post-closing trial balance.
Please submit your documents in this order:
• Journal Entries (Pages 5 – 6)
• Ledgers (completed)
• Unadjusted Trial Balance
• Adjusting Journal Entries (Page 7)
• Adjusted Trial Balance
• Income Statement
• Statement of Retained Earnings
• Balance Sheet (Classified)
• Closing Entries (Page 8)
• Post-Closing Trial Balance