Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. 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 it as unearned fees, RM4,500. 5. Received cash from clients on account, RM2,450. 9. Paid cash for a newspaper advertisement, RM225. Paid Office Station Co. for part of the debt incurred on April 5, RM640. 13. 15. Provided services on account for the period May 1–15, RM9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, RM750. 16. Received cash from cash clients for fees earned during the period May 1-16, RM8,360. Purchased supplies on account, RM735. 17. 20. 21. Provided services on account for the period May 16-20, RM4,820. 25. Received cash from cash clients for fees earned for the period May 17-23, RM7,900. 27. Received cash from clients on account, RM9,520. Paid part-time receptionist for two weeks' salary, RM750. Paid telephone bill for May, RM260. Paid electricity bill for May, RM810. Received cash from cash clients for fees earned for the period May 26-31, RM3,300. Provided services on account for the remainder of May, RM2,650. 28. 30. 31. 31. 31. 31. Kelly withdrew RM10,500 for personal use. Additional information: The ending balances of the accounts as of 30 April 2019 are as follows: Kelly Consulting Post-Closing Trial Balance April 30, 2019 Debit Balances Balances Credit Account No. Cash..... 11 22,100 Accounts Receivable 12 3,400 Supplies Prepaid Rent. Prepaid Insurance. Office Equipment... 14 1,350 15 3,200 16 1,500 18 14,500 Accumulated Depreciation Accounts Payable.. 19 330 21 800 Salaries Payable 22 120 Unearned Fees 23 2,500 Kelly Pitney, Capital... 31 42,300 46,050 46,050 -
Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. 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 it as unearned fees, RM4,500. 5. Received cash from clients on account, RM2,450. 9. Paid cash for a newspaper advertisement, RM225. Paid Office Station Co. for part of the debt incurred on April 5, RM640. 13. 15. Provided services on account for the period May 1–15, RM9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, RM750. 16. Received cash from cash clients for fees earned during the period May 1-16, RM8,360. Purchased supplies on account, RM735. 17. 20. 21. Provided services on account for the period May 16-20, RM4,820. 25. Received cash from cash clients for fees earned for the period May 17-23, RM7,900. 27. Received cash from clients on account, RM9,520. Paid part-time receptionist for two weeks' salary, RM750. Paid telephone bill for May, RM260. Paid electricity bill for May, RM810. Received cash from cash clients for fees earned for the period May 26-31, RM3,300. Provided services on account for the remainder of May, RM2,650. 28. 30. 31. 31. 31. 31. Kelly withdrew RM10,500 for personal use. Additional information: The ending balances of the accounts as of 30 April 2019 are as follows: Kelly Consulting Post-Closing Trial Balance April 30, 2019 Debit Balances Balances Credit Account No. Cash..... 11 22,100 Accounts Receivable 12 3,400 Supplies Prepaid Rent. Prepaid Insurance. Office Equipment... 14 1,350 15 3,200 16 1,500 18 14,500 Accumulated Depreciation Accounts Payable.. 19 330 21 800 Salaries Payable 22 120 Unearned Fees 23 2,500 Kelly Pitney, Capital... 31 42,300 46,050 46,050 -
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
Section: Chapter Questions
Problem 1CPP: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle...
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Question
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Transcribed Image Text:Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. 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 it as unearned fees, RM4,500.
Received cash from clients on account, RM2,450.
5.
9.
Paid cash for a newspaper advertisement, RM225.
13.
Paid Office Station Co. for part of the debt incurred on April 5, RM640.
15.
Provided services on account for the period May 1–15, RM9,180.
16.
Paid part-time receptionist for two weeks' salary including the amount owed on April 30,
RM750.
17.
Received cash from cash clients for fees earned during the period May 1-16, RM8,360.
20.
Purchased supplies on account, RM735.
21.
Provided services on account for the period May 16–20, RM4,820.
25.
Received cash from cash clients for fees earned for the period May 17-23, RM7,900.
27.
Received cash from clients on account, RM9,520.
28.
Paid part-time receptionist for two weeks' salary, RM750.
Paid telephone bill for May, RM260.
Paid electricity bill for May, RM810.
30.
31.
31.
Received cash from cash clients for fees earned for the period May 26–31, RM3,300.
31.
Provided services on account for the remainder of May, RM2,650.
31.
Kelly withdrew RM10,500 for personal use.
Additional information: The ending balances of the accounts as of 30 April 2019 are as follows:
Kelly Consulting
Post-Closing Trial Balance
April 30, 2019
Debit
Balances Balances
Credit
Account
No.
Cash..
11
22,100
Accounts Receivable
12
3,400
Supplies .
Prepaid Rent.
Prepaid Insurance.
Office Equipment.
Accumulated Depreciation.
Accounts Payable.
Salaries Payable.
14
1,350
15
3,200
16
1,500
18
14,500
19
330
21
800
22
120
Unearned Fees
23
2,500
Kelly Pitney, Capital...
31
42,300
46,050
46,050
![At the end of May, the following adjustment data were assembled:
(a) Insurance expired during May is RM275.
(b) Supplies on hand on May 31 are RM715.
(c) Depreciation of office equipment for May is RM330.
(d) Accrued receptionist salary on May 31 is RM325.
(e) Rent expired during May is RM1,600.
(f) Unearned fees on May 31 are RM3,210.
Instructions
1.
Prepare journal entries for each transaction listed in the table above (use Section I template),
based on Kelly Consulting's chart of accounts.
Chart of Accounts for Kelly Consulting
Cash
Kelly Pitney, Capital
Kelly Pitney, Drawing
Accounts Receivable
Supplies
Fees Earned
Prepaid Rent
Prepaid Insurance
Office Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Unearned Fees
Enter the balance in a T account (refer the post-closing Trial balance as at 30 April 2019).
Post the journal entries to T accounts (use Section II template). One example has been given
for your reference.
2.
3. Prepare adjusting journal entries for transaction (a) to (f) [use Section III template]. Then, post
the entries to the appropriate T accounts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b1a4548-c1de-44d4-af16-3591a1c23be7%2F2793f3f0-6a88-4e2a-8f6f-9d56b7db2bf3%2Foh298ty_processed.png&w=3840&q=75)
Transcribed Image Text:At the end of May, the following adjustment data were assembled:
(a) Insurance expired during May is RM275.
(b) Supplies on hand on May 31 are RM715.
(c) Depreciation of office equipment for May is RM330.
(d) Accrued receptionist salary on May 31 is RM325.
(e) Rent expired during May is RM1,600.
(f) Unearned fees on May 31 are RM3,210.
Instructions
1.
Prepare journal entries for each transaction listed in the table above (use Section I template),
based on Kelly Consulting's chart of accounts.
Chart of Accounts for Kelly Consulting
Cash
Kelly Pitney, Capital
Kelly Pitney, Drawing
Accounts Receivable
Supplies
Fees Earned
Prepaid Rent
Prepaid Insurance
Office Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Unearned Fees
Enter the balance in a T account (refer the post-closing Trial balance as at 30 April 2019).
Post the journal entries to T accounts (use Section II template). One example has been given
for your reference.
2.
3. Prepare adjusting journal entries for transaction (a) to (f) [use Section III template]. Then, post
the entries to the appropriate T accounts.
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