4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8….
The following solution is suggested to handle the subject “4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8….“. Let’s keep an eye on the content below!
Question “4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8….”
4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Ma Received cash from clients as an advance payment for services to be provided and recorded it as uncared foes, $4.500 Received cash from clients on account, $2,450 1 Paid cash for a newspaper advertisement, $225. 13. Paid Office Station Co. for part of the debt incurred on April. 5640 15. Recorded services provided on account for the period May 1-15.59.180 16. Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, 5750 17. Recorded cash from cash clients for fees earned during the period May 1-16, S8,360, Record the following transactions on Page 6 of the journal: po. purchased supplies on account, $735. Recorded services provided on account for the period May 16-20, S4,830 B. Recorded cash from cash clients for fees earned for the period May 17-23.57.900 27. Received cash from clients on account, 89,520 28. Paid part-time receptionist for two weeks’ salary, 5750. po. paid telephone bill for May, $260. 1. Faid electricity bill for May, S810. 31. Recorded cash from cash clients for fees eamed for the period May 26-31, 53,300 31. Recorded services provided on account for the remainder of May, $2,650. 2.1. Paid dividends, $10.500 Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 20Y8, is shown in Exhibit 17. 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, 20Y8, and place a check mark (™) in the Posting Reference column. Journalize each of the May 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.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance.
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). 1. Insurance expired during May is $275. 2. Supplies on hand on May 31 are 5715. 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. 5. (REQUIRED Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet. Answer Check Figure: Net income, 533,425 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. in Exhibit 9 – Chart of Accounts: 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable Open Word 31 common Stack 29
in Exhibit 17: Post Closing Trial Balance Post-Closing Trial Balance, Kelly Consulting Kelly Consulting Post-Closing Trial Balance April 30, 2018 Account No. Credit Balances 11 12 14 15 Debit Balances 22,100 3,400 1,350 3,200 1,500 14,500 16 Cash.. Accounts Receivable Supplies Prepaid Rent Prepaid Insurance.. Office Equipment Accumulated Depreciation Accounts Payable… Salaries Payable Unearned Fees Common Stock Retained Earnings 18 19 21 22 23 31 330 800 120 2,500 30,000 12,300 46,050 32 46,050 Open Word 19
C) Complete the worksheet. The worksheet must be legible and hand- written. (This is required, not optional) D) Prepare an Income statement in good form. The Income Statement must be prepared on excel or word or another computer program. E) Prepare a Statement of Stockholders Equity. The Statement of Stockholders’ Equity must be prepared on excel or word or another computer program. F) Prepare a Balance Sheet. The Balance Sheet must be legible and hand-written
G) You must journalize each of the May transaction in a two-column journal starting on Page 5. The journal entries must be handwritten. (Follow proper process of journalizing.) H) Post the journal entries to the ledger of four-columns. Use the Chart of Accounts provided in the problem. The postings to the general ledger must be handwritten. 1) Prepare a legible hand-written post-closing trial balance. J) Journalize and post the adjusting entries and the closing entries to the general journal. The journal entries and postings entries must be hand-written. K) Post all the journal entries, adjusting entries and closing entries to the general ledger. The general ledger must be hand-written. Use the Chart of Accounts provided. L) Prepare a post-closing trial balance. The post-closing trial balance must be prepared on excel or word or another computer program.
Answer
Kelly Consulting Journal Enters Date Particulars 3.5.2019. Cash a/c to Unearned fees (Advance received by clients) 4500 4500 Dr. 2450 13.5.2019. Cash a/c to Accounts Receivable (Cash earned from creditors) 9180 630 Dr. Dr. 120 16.5.2019. Salary Expense (Salary paid with cash) 750 Dr. 8360 17.5.2019. Cash a/c TO Fees Earned.
Date Dr. Particulars 21.5.2019. Accounts Receivable a/c to Fees Earned. (Fees paid in cash). Debit in $ Credit in $ 4820 4820 Dr. 7900 2.25.2019. Cash a/c to Accounts Receivable (Cash earned from debtors) 9520 Dr. 31.5.2019. Cash a/c. To Fees (Fees earned by cash) 3300 Dr. 31.5.2019. Dividends a/c.
Adjusting Enteries Date Particulars 31.5.2019. Insurance Expense A/c Doctor To Prepaid Insurance (Insurance expenses) Debit in $ Credit In $ 275 275 31.5.2019. Supplies Expense A/c Doc. 1370 To Supplies (Supplies cost) 1350+735-715 = 1370-1370 330 31.5.2019. Depreciation Expense A/c To Accum. Depre-Off.Equip (To track depreciation). 330 Dr. 325. 2019 Salary Expense (Salary expense accrued). 325 Dr. 1600 31.5.2019 Rental Expense (Rent expensed). 31.5.2019 Unearned Fees a/c to Dr. 3790 To Fees (Fees earned). 2500+ 4500 – 3210 = 3790 3790
The month ending with 31.5.2019. Particulars Cash Accounts Prepaid Rent Prepaid insurance Office Equipment Payable Salaries Dividends Fees Common Stock Retained Earnings Fees Earned Salaries Expense Rent Expense Supplies Insurance Expense Miscellaneous Totals Net Income Adjustments Adjusted to TB Income Statement Balance Sheet 40000 40000 70315 700315 70315 7315 33425 40000 70315 40000 70315 40315 40000 7031570315 Credit in $Debit in $ in $ Creditin $ Credit in Credit in the $ Credit in Credit in Credit in Credit in £ Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Credit in Debit in Credit in Credit in Credit in Credit in $
40000 Income Statement for the Month Ending 31.5.2019 Fees earned less: Salary expense 1705 Rent expense 1600 Supplies expenses 1370 Depreciation expense 330 Insurance expense 275 Miscellaneous expenditure 1295 net income 6575 33425 Statement Of Retained Earnings for the Month Ending 31.5.2019.
Amounts In $ Balance Sheet As At 31.5.2019 Assets Present Assets Cash Supplies Prepaid Rent Prepaid insurance Amounts In $ Current Liabilities 44195 Accounts Payable 895 325 3210 1225 715 unearned fees 1600 895 325 3210 3430 1225 55815 1400 30000 Non-current Assets Office Equipment Accumulated depreciation Total Assets Shareholders equity Common Stock 13840 Retained Earnings 69655 Total liabilities & Equity -66035225 65225 65225 69655
Dr. Debit in $ Credit at $ 6575 1705 Closing Entries Date Particulars 31.5.2019. Fees Earned a/c to Income Summary (Revenue account closed) 40000 Dr. 33425 33.25.2019. Income Summary a/c to Retained Earnings (33425 10500) 31.5.2019. Dividends (Cash withheld for personal use) 10500
Conclusion
Above is the solution for “4-8j: Comprehensive Problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8….“. We hope that you find a good answer and gain the knowledge about this topic of business.