I Need every thing completed 222 Chapter 4 Completing the Accounting Cycle Comprehensive Problem 1 ✓…
The following solution is suggested to handle the subject “I Need every thing completed 222 Chapter 4 Completing the Accounting Cycle Comprehensive Problem 1 ✓…“. Let’s keep an eye on the content below!
Question “I Need every thing completed 222 Chapter 4 Completing the Accounting Cycle Comprehensive Problem 1 ✓…”
222 Chapter 4 Completing the Accounting Cycle Comprehensive Problem 1 ✓ 8. Net income. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The $35.425 ing cycle for Kelly Consulting for April, including financial statements, was illustrated chapter. 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 its earned fees. $4,500. 5. Received cash from clients on account 52.450. 9. Paid cash for a newspaper advertisement $225. 13. Paid Office Station Co. for part of the debt incurred on April 5,5640. 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, 58,360. Recond 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, 57,900. 27. Received cash from clients on account. 59,520 28. Paid part-time receptionist for two weeks’salary. 5750. 30. Paid telephone bill for May, 5260. 31. Paid electricity bill for May, $810 31. Recorded cash from cash clients for fees earned for the period May 26-31, 53,300. 31. Recorded services provided on account for the remainder of May. 52650. 31. 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, 2018, 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-columna count. Date the balances May 1, 2018, and place a check mark in the Posting Refer ence 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). (A) Insurance expired during May is $275. (B) Supplies on hand on May 31 are 5715. (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. IF) Unearned fees on May 31 are $3.210. 5. (Optional) 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 retained earings statement, and a balance sheet. Prepare and post the closing entries. Record the closing entries on Pace of the jour (Income Summary is account in the chart of accounts.) Indicate closed accounts inserting a line in both the Balance columns opposite the closing entry 10. Prepare a post-closing trial balance.
1. Journal 2. Ledger 3. Unadjusted trial balance 4. Journal -adjustment 5. Ledger 5 6. Adjusted trial balance 7. Worksheet 8. Financial statement 9. Journal – closing entry 10. ledger 11. Post closing trial balance
The Andama A posi of the post-closing trial next period. The accounts and amounts with the accounts and amounts listed on the balance The post-closing trial balance for Kelly Consulting is shown nown in the post-closing trial balance are taken from the ending Dances in the le Exhibir 18. These balances agree with the amounts shown on Kelly Consultino’s ccounts and listed on the bonsulting is anding balances balances in the eager shou og trial balance for kee maken from the wyn on Kelly Consulting’s balan sheet in Exhibit 15. Kelly Consulting Post-Closing Trial Balance April 30, 2018 Account Credit Balances No. Exhibit 17 Post-Closing Trial Balance, Kelly Consulting 11 Debit Balances 22,100 3,400 1,350 3,200 1,500 14,500 14 330 800 Cash…. Accounts Receivable Supplies … Prepaid Rent .. Prepaid Insurance….. Office Equipment…. Accumulated Depreciation.. Accounts Payable….. Salaries Payable … Unearned Fees … Common Stock Retained Earnings … 120 2,500 30,000 12,300 46,050 46,050
Answer
Kelly Consulting Journal Enters Date Particulars 3.5.2019 Cash and Unearned Fees (Advance received by clients) Debit in $ Credit In $ 4500 4500 5.5.2019 15.5.2019 Accounts Payable a/c to Fees Earned. (Salary paid with cash) 9180 Dr. 630 120 16.5.2019 Salary expense a/c Salaries payable a/c Cash (Salary paid with cash) 750 Dr. 8360 17.5.2019.
Date Particulars 21.5.2019 Debit in $ Credit In $ Dr. Date Particulars 21.5.2019 Fees Earned a/c to Accounts Receivable (Fees accrued). 4820 Dr. 7900 2.2.5.2019 Cash a/c to Fees Earned a/c Cash (Electricity Bill). 810 Dr. 31.5.2019 Fees Earned a/c Cash (Fees earned by cash) 2650 10500 3.1.5.2019 Dividends (Cash withheld for personal use) 10500
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 costd) 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 Rent expense a/c to Prepaid Rent (Rent expensed). 3210 3290
The Month Ending 31.5.2019.
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 815 Salaries Payable 715 1525 55815 895 3253 3210 4430 Non-current Assets Office Equipment Accumulated depreciation Total Assets 14500-660 Shareholders Equity Common stock 13840 Retained Earnings 69655 Total liabilities & Equity 352225 65225 69655
Closing Entries Date Particulars 31.5.2019. Income Summary a/c to Salary Expense to Rent Expenses To Supplies Expenses To Depreciation Insurance Expenses To Miscellaneous (Revenue accounts close) $ 40000 31.5.2019. 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 “I Need every thing completed 222 Chapter 4 Completing the Accounting Cycle Comprehensive Problem 1 ✓…“. We hope that you find a good answer and gain the knowledge about this topic of business.