Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.
ID: 2455029 • Letter: K
Question
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.
Please review the April transactions and financial statements for Kelly Consulting on pages 165 – 175.
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, $ 4,500.
5. Received cash from clients on account, $ 2,450.
9. Paid cash for a newspaper advertisement, $ 225.
13. Paid Office Station Co. for part of the debt incurred on April 5, $ 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.
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, $ 7,900.
27. Received cash from clients on account, $ 9,520.
28. Paid part- time receptionist for two weeks’ salary, $ 750.
30. Paid telephone bill for May, $ 260.
31. Paid electricity bill for May, $ 810.
31. Recorded cash from cash clients for fees earned for the period May 26– 31, $ 3,300.
31. Recorded services provided on account for the remainder of May, $ 2,650.
31. Paid dividends, $ 10,500.
At the end of May, the following accounting adjustments were assembled. Analyze and use the data below to record the adjustments to the journal:
a. Insurance expired during May is $ 275.
b. Supplies on hand on May 31 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 $ 1,600.
f. Unearned fees on May 31 are $ 3,210.
Explanation / Answer
Adjusting entry:
Date Title Debit credit 3 cash 4500 Unearned service revenue 4500 5 cash 2450 Accounts receivable 2450 9 Advertising expense 225 cash 225 13 Accounts payable 640 cash 640 15 Accounts receivable 9180 service revenue 9180 16 salary 750 cash 750 17 cash 8360 service revenue 8360 20 supplies 735 Accounts payable 735 21 Accounts receivable 4820 service revenue 4820 25 cash 7900 service revenue 7900 27 cash 9520 Accounts receivable 9520 28 salary 750 cash 750 30 Telephone expense 260 cash 260 31 Electricity 810 cash 810 31 cash 3300 service revenue 3300 31 Accounts receivable 2650 service revenue 2650 31 Dividend 10500 cash 10500Related Questions
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