Comprehensive Problem 1 ✓ 8 Net income. $31,425 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: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned tree $4,500 5. Received cash from clients on account $2,450. 9. Paid cash for a newspaper advertisement $225. 13. Raid Office Station Co for part of the debt incurred on April $, $640. 15. Recorded services provided on account for the period May 1-15, $9,180. 16 Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750. 17. Recorded cash from cash clients for fees earned during the period May 1–16, $8,360. Record the following transactions on Page 6 of the Journal 20. Purchased support 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, $7,900 27. Received cash from clients on account $9,520. 28. Paid part-time receptionist for two weeks’ salary. $7S0. 30. Raid telephone bill for May. $260 31. Paid electricity bill for May, $810. 31. Recorded cash from cash clients tor lees earned for the period May 20–31. $3,300. 31. Recorded services provided on account for the remainder of May, $2,650. 31. Paid dividends $10,500 Instructions 1 . The chart of accounts foe Kelly Consulting is shown us 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 cm Page $ 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. 5. 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 II are $715. (c) Depreciation of office equipment for May is $330. (d) Accrued receptionist salary on May 31 is $325. (e) Rent expired during May is $1600. (f) 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 statement of stockholders equity, and a balance sheet. 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.

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
Chapter 4, Problem 1COP
Textbook Problem

Comprehensive Problem 1

8 Net income. $31,425

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:

  May 3.    Received cash from clients as an advance payment for services to be provided and recorded it as unearned tree $4,500

  1. 5.    Received cash from clients on account $2,450.
  2. 9.    Paid cash for a newspaper advertisement $225.
  3. 13.    Raid Office Station Co for part of the debt incurred on April $, $640.
  4. 15.    Recorded services provided on account for the period May 1-15, $9,180.
  5. 16     Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.
  6. 17.    Recorded cash from cash clients for fees earned during the period May 1–16, $8,360. Record the following transactions on Page 6 of the Journal
  7. 20.    Purchased support on account $735.
  8. 21.    Recorded services provided on account for the period May 16–20. $4,820
  9. 25.    Recorded cash from cash clients for fees earned for the period May 17–23, $7,900
  10. 27.    Received cash from clients on account $9,520.
  11. 28.    Paid part-time receptionist for two weeks’ salary. $7S0.
  12. 30.    Raid telephone bill for May. $260
  13. 31.    Paid electricity bill for May, $810.
  14. 31.    Recorded cash from cash clients tor lees earned for the period May 20–31. $3,300.
  15. 31.    Recorded services provided on account for the remainder of May, $2,650.
  16. 31.    Paid dividends $10,500

Instructions

  1.   1.    The chart of accounts foe Kelly Consulting is shown us 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 cm Page $ of the journal and using Kelly Consulting’s chart of accounts. (Do not insert the account numbers in the journal at this time.)
  2. 2.    Post the journal to a ledger of four-column accounts.
  3. 5.    Prepare an unadjusted trial balance.
  4. 4.    At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
    1.   (a)    Insurance expired during May is $275.
    2.   (b)    Supplies on hand on May II are $715.
    3.   (c)    Depreciation of office equipment for May is $330.
    4.   (d)    Accrued receptionist salary on May 31 is $325.
    5.   (e)    Rent expired during May is $1600.
    6.   (f)    Unearned fees on May 31 are $3,210
  5. 5.    (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet
  6. 6.    Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal.
  7. 7.    Prepare an adjusted trial balance.
  8. 8.    Prepare an income statement, a statement of stockholders equity, and a balance sheet.
  9. 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. 10.    Prepare a post-closing trial balance.

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Chapter 4 Solutions

Corporate Financial Accounting
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of stockholders equity Scott Lockhart...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation (FDX) had the...Ch. 4 - Statement of stockholders equity Climate Control...Ch. 4 - Statement of stockholders equity; net loss...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Balance sheet The following balance sheet was...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries with net income Automation...Ch. 4 - Closing entries with net loss Summit Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Appendix 1 Adjustment data on an end-of-period...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Appendix 1 Financial statements from an...Ch. 4 - Appendix 1 Adjusting entries from an end-of-period...Ch. 4 - Appendix 1 Closing entries from an end-of-period...Ch. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries 8.Net...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - accounts, adjusting entries, financial statements,...Ch. 4 - Net Income: 51,150 Ledger accounts, adjusting...Ch. 4 - Net income: 43,475 Complete accounting cycle For...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Income: 27,350 accounts, adjusting entries,...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Net income: 53,77S Complete accounting cycle For...Ch. 4 - Comprehensive Problem 1 8 Net income. 31,425...Ch. 4 - Working Capital and Current Ratio Analyze and...Ch. 4 - Analyze and compare Zynga, Electronic Arts, and...Ch. 4 - Analyze and compare Foot Locker and The Finish...Ch. 4 - Analyze Under Armour The following year-end data...Ch. 4 - Analyze Sears Holding Corporation Soars Holdings...Ch. 4 - Analyze and compare Alphabet (Google) and...Ch. 4 - Ethics in Action New Wave Images is a graphics...Ch. 4 - Communication Your friend, Daniel Nat, recently...Ch. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements and loan Assume that you...

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