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Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into transactions. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

	Required:
	8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a retained earnings statement, and a balance sheet. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a retained earnings statement, and a balance sheet. Be sure to read the instructions for each financial statement carefully.
	9. A. Prepare the closing entries on Page 8 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
	9. B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal in CengageNOW.
	10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Kelly Consulting ADJUSTED TRIAL BALANCE Score: 77/83 May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 44,195.00 2 Accounts Receivable 8,080.00 3 Supplies 715.00 4 Prepaid Rent 1,600.00 5 Prepaid Insurance 1,225.00 6 Office Equipment 14,500.00 7 Accumulated Depreciation 660.00 8 Accounts Payable 895.00 9 Salaries Payable 325.00 10 Unearned Fees 3210.00 11 Common Stock 30,000.00 12 Retained Earnings 12,300.00 13 Dividends 10,500.00 14 Fees Earned 40,000.00 15 Salary Expense 1,705.00 16 Rent Expense 1,600.00 17 Supplies Expense 1,370.00 18 Depreciation Expense 330.00 19 Insurance Expense 275.00 20 Miscellaneous Expense 1,295.00 21 Totals 87,390.00 87,390.00 CHART OF ACCOUNTSKelly ConsultingGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense Labels Current assets Current liabilities Expenses For the Month Ended May 31, 2018 May 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net income Net loss Retained earnings, May 1, 2018 Retained earnings, May 31, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders equity Total property, plant, and equipment Total stockholders equity 9. A. Prepare the closing entries on Page 8 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 9. B. Add the appropriate posting reference to the journal in CengageNOW. PAGE 8 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 12 13 14 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Refer to the Chart of Accounts and the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers. A colon (:) will automatically appear if it is required. Kelly Consulting Income Statement 1 2 3 4 5 6 7 8 9 10 8. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a retained earnings statement. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Kelly Consulting Retained Earnings Statement 1 2 3 4 5 8. C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a balance sheet. Refer to the Chart of Accounts and the Labels and Amount Descriptions list for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Kelly Consulting Balance Sheet 1 Assets 2 3 4 5 6 7 8 9 10 11 12 13 14 Liabilities 15 16 17 18 19 20 Stockholders Equity 21 22 23 24 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Kelly Consulting POST-CLOSING TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Totals

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