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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:
11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees 31 Common 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. Debit Credit Cash 11 22,100 Accounts Receivable 12 3,400 Supplies 14 1,350 Prepaid Rent 15 3,200 Prepaid Insurance 16 1,500 Office Equipment 18 14,500 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.
Description Post. Ref. Debit Credit Accounts ReceivableCashFees EarnedPrepaid RentUnearned Fees
fill in the blank 2 fill in the blank 3 Accounts ReceivableCashFees EarnedPrepaid RentUnearned Fees
fill in the blank 5 fill in the blank 6
May 5: Received cash from clients on account, $2,450.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 8 fill in the blank 9 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 11 fill in the blank 12
May 9: Paid cash for a newspaper advertisement, $225.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseRent Expense
fill in the blank 14 fill in the blank 15 Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseSupplies Expense
fill in the blank 17 fill in the blank 18
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashOffice EquipmentSupplies Expense
fill in the blank 20 fill in the blank 21 Accounts PayableAccounts ReceivableCashOffice EquipmentSupplies Expense
fill in the blank 23 fill in the blank 24
May 15: Recorded services provided on account for the period May 115, $9,180.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 26 fill in the blank 27 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 29 fill in the blank 30
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedSalary Expense
fill in the blank 32 fill in the blank 33 Accounts ReceivableCashFees EarnedSalaries PayableUnearned Fees
fill in the blank 35 fill in the blank 36 Accounts PayableCashFees EarnedSalaries PayableSalary Expense
fill in the blank 38 fill in the blank 39
May 17: Recorded cash from cash clients for fees earned during the period May 116, $8,360.
Description Post. Ref. Debit Credit Accounts ReceivableCashFees EarnedSalary ExpenseUnearned Fees
fill in the blank 41 fill in the blank 42 Accounts PayableCashFees EarnedSalaries PayableUnearned Fees
fill in the blank 44 fill in the blank 45
May 20: Purchased supplies on account, $735.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashOffice EquipmentSupplies
fill in the blank 47 fill in the blank 48 Accounts PayableAccounts ReceivableCashSuppliesSupplies Expense
fill in the blank 50 fill in the blank 51
May 21: Recorded services provided on account for the period May 1620, $4,820.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 53 fill in the blank 54 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 56 fill in the blank 57
May 25: Recorded cash from cash clients for fees earned for the period May 1723, $7,900.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 59 fill in the blank 60 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 62 fill in the blank 63
May 27: Received cash from clients on account, $9,520.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 65 fill in the blank 66 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 68 fill in the blank 69
May 28: Paid part-time receptionist for two weeks' salary, $750.
Description Post. Ref. Debit Credit Accounts PayableCashMiscellaneous ExpenseSalaries PayableSalary Expense
fill in the blank 71 fill in the blank 72 Accounts PayableCashSalaries PayableSalary ExpenseUnearned Fees
fill in the blank 74 fill in the blank 75
May 30: Paid telephone bill for May, $260.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseSupplies Expense
fill in the blank 77 fill in the blank 78 Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseSupplies
fill in the blank 80 fill in the blank 81
May 31: Paid electricity bill for May, $810.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseOffice Equipment
fill in the blank 83 fill in the blank 84 Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseSupplies
fill in the blank 86 fill in the blank 87
May 31: Recorded cash from cash clients for fees earned for the period May 2631, $3,300.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 89 fill in the blank 90 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 92 fill in the blank 93
May 31: Recorded services provided on account for the remainder of May, $2,650.
Description Post. Ref. Debit Credit Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 95 fill in the blank 96 Accounts PayableAccounts ReceivableCashFees EarnedUnearned Fees
fill in the blank 98 fill in the blank 99
May 31: Paid dividends, $10,500.
Description Post. Ref. Debit Credit Accounts PayableCashDividendsMiscellaneous ExpenseRetained Earnings
fill in the blank 101 fill in the blank 102 Accounts PayableCashDividendsMiscellaneous ExpenseRetained Earnings
fill in the blank 104 fill in the blank 105
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