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:
11Cash 32Retained Earnings
12Accounts Receivable33Dividends
14Supplies 41Fees Earned
15Prepaid Rent 51Salary Expense
16Prepaid Insurance 52Rent Expense
18Office Equipment 53Supplies Expense
19Accumulated Depreciation54Depreciation Expense
21Accounts Payable 55Insurance Expense
22Salaries Payable 59Miscellaneous Expense
23Unearned Fees
31Common 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. DebitCredit
Cash 1122,100
Accounts Receivable 123,400
Supplies 141,350
Prepaid Rent 153,200
Prepaid Insurance 161,500
Office Equipment 1814,500
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
Required:
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.
May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
May 5: Received cash from clients on account, $2,450.
May 9: Paid cash for a newspaper advertisement, $225.
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
May 15: Recorded services provided on account for the period May 1–15, $9,180.
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
May 20: Purchased supplies on account, $735.
May 21: Recorded services provided on account for the period May 16–20, $4,820.
May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.
May 27: Received cash from clients on account, $9,520.
May 28: Paid part-time receptionist for two weeks' salary, $750.
May 30: Paid telephone bill for May, $260.
May 31: Paid electricity bill for May, $810.
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
May 31: Recorded services provided on account for the remainder of May, $2,650.
May 31: Paid dividends, $10,500.