Kelly pitney began her consulting business, Kelly Consulting, on April 1, 2010.

The accounting cylcle for Kelly Consulting for April ,

including financial statements was illistrated on page 157-168. During May, kelly consulting entered the following transactions:
May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,500.
5. Received cash from clients on account, $1,750.
9. Paid cash for a newspaper advertisement, $300.
13. Paid office station company for part of the debt incurred on april 5, $400.
15. Recorded services provided on account for the period May 1-15, $6,100.
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, $8,200.
20. Purchased supplies on account, $400
21. Recorded services provided on account for the period May 16-20, $3,900.
25. Recorded cash from cash clients for fees earned for the period May 17-23, $5,100.
27. Recieved cash from clients on account, $9,500.
28. Paid part-time receptionist for two weeks salary, $750.
30. Paid telephone bill for May, $120.
31. Paid electricity bill for May $290.
31. Recorded cash from cash clients for fees earned for the period May 26-31, $3,875.
31. Recorded services provided on account for the remainder of May, $3,200.
31. Kelly withdrew $8,000 for personal use.
Pg. 158 Chart of Accounts:

April 1. The following assets were recieved from Kelly Pitney: Cash, $13,100; Accounts receivable, $3,000; Supplies, $1,400; and office
equipment, $12,500. there were no liabilities recieved.
1. Paid three months rent on a lease rental contract, $4,800.
2. Paid the premiums on property and casualty insurance policies, $1,800.
4. Recieved cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000.
5. Purchased additional office equipment on account from Office Station Co., $2,000.
6. Recieved cash from clients on account, $1,800.
10. Paid cash for a newspaper advertisement, $120.
12. paid Office Station Co. for part of the debt incurred on April 5, $1,200.
12. Recorded services provided on account for the period April 1-12, $4,200.

14. Paid part-time receptionist for two weeks' salary, $750.

17. Recorded cash from cash clients for fees earned during the period April 1-16, $6,250.
18. Paid cash for supplies, $800.
20. Recorded services provided on account for the period April 13-20, $2,100.
24. Recorded cash from cash clients for fees earned for the period April 17-24, $3,850.
26. Recieved cash from clients on account, $5,600.
27. Paid part-time receptionist for two weeks' salary, $750.
29. Paid telephone bill for April, $130.
30. paid electricity bill for April, $200.
30. Recorded cash from clients for fees earned for the period April 25-30, $3,050.
30. Recorded services provided on account for the remainder of April, $1,500.
30. kelly withdrew $6,000 for personal use.
Pg. 166 Post-closing trial balance

Debit Credit
cash................................22,100
Accounts receivable.......3,400
Supplies...........................1,350
Prepaid rent......................3,200
Prepaid insurance.............1,500
office equipment...............14,500
Accumualted depreciation.. 330
Accounts payable.............. 800
Salaries Payable.............. 120
Unearned Fees................ 2,500
kelly pitney, Capital.......... 42,300
46,050 46,050
Instructions:

1. The chart of accounts for Kelly Consulting is shown on page 158, and the post-closing trail balance as of April 30, 2010 is shown on page
166. For each account in the post-closing trial balance, enter the balance in the appropriate balance column of a four column account. Date

the balances May 1, 2010, and place a check mark in the posting referece column. Journalize each of the May transactions in a two column
journal using Kelly Consulting's chart of accounts. (do not insert the account numbers in the journal at this time.)
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trail balance
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 $300.
b. Supplies on hand on May 31 are $600.
c. Depreciation of office equipment for May is $330.
d. Accrued receptionist salary on May 31 is $240.
e. Rent expired during May is $1,600.
f. Unearned fees on May 31 are $2,000
5. Enter the unadjusted trial balance on an end-of-period spreadsheet (worksheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7.Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner's equity, and a balance sheet.
9. Prepare and post the closing entries. (Income summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a
line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance
COMPREHENSIVE PROBLEM 1
1. and 2.
Date
2010
May

JOURNAL
Description

3
5

Pages 5 and 6
Post.
Ref.

Debit

Cash.......................................................................
Unearned Fees................................................

11
23

2,500

Cash.......................................................................

11

1,750

Credit

2,500

9
13
15
16

17
20
21
25
27
28
30
31

Accounts Receivable......................................

12

1,750

Miscellaneous Expense........................................
Cash................................................................

59
11

300

Accounts Payable.................................................
Cash................................................................

21
11

400

Accounts Receivable............................................
Fees Earned....................................................

12
41

6,100

Salary Expense.....................................................
Salaries Payable...................................................
Cash................................................................

51
22
11

630
120

Cash.......................................................................
Fees Earned....................................................

11
41

8,200

Supplies.................................................................
Accounts Payable...........................................

14
21

400

Accounts Receivable............................................
Fees Earned....................................................

12
41

3,900

Cash.......................................................................
Fees Earned....................................................

11
41

5,100

Cash.......................................................................
Accounts Receivable......................................

11
12

9,500

Salary Expense.....................................................
Cash................................................................

51
11

750

Miscellaneous Expense........................................
Cash................................................................

59
11

120

Miscellaneous Expense........................................

59

290

300
400
6,100

750
8,200
400
3,900
5,100
9,500
750
120

31

Cash................................................................

11

Cash.......................................................................
Fees Earned....................................................

11
41

1. and 2.

JOURNAL

Date

31

3,875
3,875
Pages 5 and 6

Post.
Ref.

Description

2010
May 31

290

Debit

Accounts Receivable............................................
Fees Earned....................................................

12
41

3,200

Kelly Pitney, Drawing.........................................

Cash................................................................

32
11

8,000

Credit

3,200
8,000

2., 6., and 9.

Cash
Date
2010
May

1
3
5
9
13
16
17
25
27
28

11
Item

Balance........................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................

Post.
Ref.

5
5
5
5
5
6
6
6
6

Dr.
...............
2,500
1,750
...............
...............
...............
8,200
5,100
9,500
...............

Cr.
...............
...............
...............
300
400
750
...............
...............
...............
750

Dr.

Balance
Cr.

22,100
24,600
26,350
26,050
25,650
24,900
33,100
38,200
47,700
46,950

...............
...............
...............
...............
...............
...............
...............
...............
...............
...............

30
31
31
31

.....................................
.....................................
.....................................
.....................................

6
6
6
6

...............
...............
3,875
...............

120
290
...............
8,000

46,830
46,540
50,415
42,415

...............
...............
...............
...............

Accounts Receivable
2010
May

1
5
15
21
27
31

Balance........................
.....................................
.....................................
.....................................
.....................................
.....................................

12

5
5
6
6
6

...............
...............
6,100
3,900
...............
3,200

...............
1,750
...............
...............
9,500
...............

3,400
1,650
7,750
11,650
2,150
5,350

...............
...............
...............
...............
...............
...............

Supplies
2010
May

1
20
31

14
Balance........................
.....................................
Adjusting....................

6
7

...............
400
...............

...............
...............
1,150

1,350
1,750
600

...............
...............
...............

Prepaid Rent
Date
2010
May

1
31

15
Item

Balance........................
Adjusting....................

Prepaid Insurance

Post.
Ref.

Dr.
...............
...............

Cr.
...............
1,600

Balance
Dr.
Cr.
3,200
1,600

...............
...............
16

2010
May

1
31

Balance........................
Adjusting....................

...............
...............

...............
300

1,500
1,200

Office Equipment
2010
May

Balance........................

18
5

...............

...............

14,500

Accumulated Depreciation
2010
May

1
31

Balance........................
Adjusting....................

1
13
20

Balance........................
.....................................
.....................................

...............
...............

...............
330

...............
...............

1
16
31

Balance........................
.....................................
Adjusting....................

Unearned Fees
2010

330
660
21

5
6

...............
400
...............

...............
...............
400

...............
...............
...............

Salaries Payable
2010
May

...............
19

Accounts Payable
2010
May

...............
...............

800
400
800
22

5
7

...............
120
...............

...............
...............
240

...............
...............
...............

120

240
23

May

1
3
31

Balance........................
.....................................
Adjusting....................

5
7

...............
...............
3,000

...............
2,500
...............

...............
...............
...............

2,500
5,000
2,000

Kelly Pitney, Capital

Date
2010
May

1
31
31

Item
Balance........................
Closing........................
Closing........................

31
Post.
Ref.

8
8

Dr.
...............
...............
8,000

Cr.
...............
27,665
...............

Dr.

Balance
Cr.

...............
...............
...............

Kelly Pitney, Drawing

2010
May 31
31

.....................................
Closing........................

32
6
8

8,000
...............

...............
8,000

8,000

Income Summary
2010
May 31
31
31

Closing........................
Closing........................
Closing........................

.....................................
.....................................
.....................................

...............

33

8
8
8

...............
5,710
27,665

33,375
...............
...............

...............
...............

Fees Earned
2010
May 15
17
21

42,300
69,965
61,965

33,375
27,665

41

5
6
6

...............
...............
...............

6,100
8,200
3,900

...............
...............
...............

6,100
14,300
18,200

25
31
31
31
31

.....................................
.....................................
.....................................
Adjusting....................
Closing........................

6
6
6
7
8

...............
...............
...............
...............
33,375

5,100
3,875
3,200
3,000
...............

...............
...............
...............
...............

23,300
27,175
30,375
33,375

Salary Expense
2010
May 16
28
31
31

51

.....................................
.....................................
Adjusting....................
Closing........................

5
6
7
8

630
750
240
...............

...............
...............
...............
1,620

630
1,380
1,620

...............
...............
...............

Rent Expense
Date
2010
May 31
31

52
Item

Adjusting....................
Closing........................

Post.
Ref.
7
8

Dr.
1,600
...............

Cr.
...............
1,600

Dr.

Balance
Cr.

1,600

Supplies Expense
2010
May 31
31

Adjusting....................
Closing........................

Depreciation Expense
2010

...............

53

7
8

1,150
...............

...............
1,150

1,150

...............

54

May 31
31

Adjusting....................
Closing........................

7
8

330
...............

...............
330

330

Insurance Expense
2010
May 31
31

Adjusting....................
Closing........................

55
7
8

300
...............

...............
300

300

Miscellaneous Expense
2010
May

9
30
31
31

.....................................
.....................................
.....................................
Closing........................

...............

...............

59

5
6
6
8

300
120
290
...............

...............
...............
...............
710

300
420
710

...............
...............
...............

3.
KELLY CONSULTING
Unadjusted Trial Balance
May 31, 2010
Debit
Balances
Cash...................................................................................................
Accounts Receivable........................................................................
Supplies.............................................................................................
Prepaid Rent.....................................................................................
Prepaid Insurance............................................................................
Office Equipment.............................................................................

42,415
5,350
1,750
3,200
1,500
14,500

Credit
Balances

Accumulated Depreciation..............................................................
Accounts Payable.............................................................................
Salaries Payable...............................................................................
Unearned Fees..................................................................................
Kelly Pitney, Capital........................................................................
Kelly Pitney, Drawing......................................................................
Fees Earned......................................................................................
Salary Expense.................................................................................
Rent Expense....................................................................................
Supplies Expense..............................................................................
Depreciation Expense......................................................................
Insurance Expense...........................................................................
Miscellaneous Expense....................................................................

330
800
5,000
42,300
8,000
30,375
1,380

710
78,805

78,805

5.
A

KELLY CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 2010
Unadjusted
Trial Balance
Dr.
Cr.
42,415
5,350
1,750
3,200
1,500
14,500
330
800

Adjustments
Dr.
Cr.

Account Title
1 Cash
2 Accounts Receivable
3 Supplies
4 Prepaid Rent
5 Prepaid Insurance
6 Office Equipment
7 Accum. Depreciation
8 Accounts Payable
9 Salaries Payable
10 Unearned Fees
5,000 (f) 3,000
11 Kelly Pitney, Capital
42,300
12 Kelly Pitney, Drawing 8,000
13 Fees Earned
30,375
14 Salary Expense
1,380
(d) 240
15 Rent Expense
(e) 1,600
16 Supplies Expense
(b) 1,150
17 Depreciation Expense
(c) 330
18 Insurance Expense
(a) 300
19 Miscellaneous Expense 710

(b) 1,150
(e) 1,600
(a) 300
(c)

330

(d)

240

(f) 3,000

Adjusted
Income
Trial Balance Statement
Dr.
Cr.
Dr.
Cr.
42,415
5,350
600
1,600
1,200
14,500
660
800
240
2,000
42,300
8,000
33,375
33,375
1,620
1,620
1,600
1,600
1,150
1,150
330
330
300
300
710
710

Balance
Sheet
Dr.
Cr.
42,415
5,350
600
1,600
1,200
14,500
660
800
240
2,000
42,300
8,000

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

20
21 Net income
22
6.

78,805 78,805

6,620

6,620

79,375 79,375 5,710 33,375 73,665 46,000 20

27,665
27,665 21
33,375 33,375 73,665 73,665 22

JOURNAL

Page 7
Post.
Ref.

Date

Debit

Credit

Adjusting Entries
2010
May 31

31

31

31

31

31

Insurance Expense...............................................
Prepaid Insurance.........................................
Insurance expired.

55
16

300

Supplies Expense..................................................
Supplies...........................................................
Supplies used ($1,850 $950).

53
14

1,150

Depreciation Expense..........................................
Accumulated Depreciation...........................
Equipment depreciation.

54
19

330

Salary Expense.....................................................
Salaries Payable.............................................
Accrued salaries.

51
22

240

Rent Expense........................................................
Prepaid Rent..................................................
Rent expired.

52
15

1,600

Unearned Fees......................................................
Fees Earned....................................................

23
41

3,000

300

1,150

330

240

1,600

3,000

Unearned fees ($4,050 $1,300).

7.
KELLY CONSULTING
Adjusted Trial Balance
May 31, 2010
Debit
Balances
Cash...................................................................................................
Accounts Receivable........................................................................
Supplies.............................................................................................
Prepaid Rent.....................................................................................
Prepaid Insurance............................................................................
Office Equipment.............................................................................
Accumulated Depreciation..............................................................
Accounts Payable.............................................................................
Salaries Payable...............................................................................
Unearned Fees..................................................................................
Kelly Pitney, Capital........................................................................
Kelly Pitney, Drawing......................................................................
Fees Earned......................................................................................
Salary Expense.................................................................................
Rent Expense....................................................................................
Supplies Expense..............................................................................
Depreciation Expense......................................................................
Insurance Expense...........................................................................
Miscellaneous Expense....................................................................

Credit
Balances

42,415
5,350
600
1,600
1,200
14,500
660
800
240
2,000
42,300
8,000
33,375
1,620
1,600
1,150
330
300
710
79,375

79,375

8.
KELLY CONSULTING
Income Statement
For the Month Ended May 31, 2010
Fees earned....................................................................................
Expenses:
Salary expense.......................................................................
Rent expense..........................................................................
Supplies expense....................................................................
Depreciation expense............................................................
Insurance expense.................................................................
Miscellaneous expense..........................................................
Total expenses....................................................................
Net income.....................................................................................

$ 33,375
$1,620
1,600
1,150
330
300
710
5,710
$ 27,665

KELLY CONSULTING
Statement of Owners Equity
For the Month Ended May 31, 2010
Kelly Pitney, capital, May 1, 2008...............................................
Net income for the month.............................................................
Less withdrawals...........................................................................
Increase in owners equity............................................................
Kelly Pitney, capital, May 31, 2010.............................................

$ 42,300
$ 27,665
8,000

KELLY CONSULTING
Balance Sheet

19,665
$ 61,965

May 31, 2010

Assets
Current assets:
Cash................................. $42,415
Accounts receivable.......
5,350
Supplies...........................
600
Prepaid rent....................
1,600
Prepaid insurance..........
1,200
Total current assets.....
$51,165
Property, plant, and
equipment:......................
Office equipment............ $14,500
Less accum. depr.........
660
13,840
Total assets.........................
$ 65,005
9.

Liabilities
Current liabilities:
Accounts payable........ $ 800
Salaries payable...........
240
Unearned fees.............. 2,000
Total liabilities..........
$
Owners Equity
Kelly Pitney,
capital...........................
Total liabilities and
owners equity.............

JOURNAL

61,965
$ 65,005
Page 8

Post.
Ref.

Date

3,040

Debit

Credit

Closing Entries
2010
May 31
31

Fees Earned..........................................................
Income Summary..........................................

41
33

33,375

Income Summary.................................................
Salary Expense...............................................
Rent Expense..................................................
Supplies Expense...........................................
Depreciation Expense....................................
Insurance Expense.........................................

33
51
52
53
54
55

5,710

33,375
1,620
1,600
1,150
330
300

31
31

Miscellaneous Expense..................................

59

710

Income Summary.................................................
Kelly Pitney, Capital.....................................

33
31

27,665

Kelly Pitney, Capital............................................

Kelly Pitney, Drawing...................................

31
32

8,000

27,665
8,000

10.
KELLY CONSULTING
Post-Closing Trial Balance
May 31, 2010
Debit
Balances
Cash................................................................................................
Accounts Receivable.....................................................................
Supplies ........................................................................................
Prepaid Rent..................................................................................
Prepaid Insurance.........................................................................
Office Equipment..........................................................................
Accumulated Depreciation...........................................................
Accounts Payable..........................................................................
Salaries Payable............................................................................
Unearned Fees...............................................................................
Kelly Pitney, Capital.....................................................................
Totals......................................................................................

Credit
Balances

42,415
5,350
600
1,600
1,200
14,500

65,665

660
800
240
2,000
61,965
65,665