Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.
ID: 2456555 • Letter: K
Question
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. 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:
Record the following transactions on Page 6 of the journal:
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.Explanation / Answer
1) A
Date Description post Ref Debit Credit
May1, 2016 Cash -------- $22,100
May1, 2016 Accounts Receivable $3,400
May 1,2016 Supplies ----------- $1,350
May 1,2016 Prepaid Rent ------------$3,200
May 1, 2016 Prepaid Insurance ------$1,500
May 1,2016 Office Equipment------------$14,500
May 1,2016 Accumulated Depreciation-- ________ $330
May 1,2016 Accounts payable ______ _________$800
May 1,2016 Salaries payable ------------- __________$120
May 1,2016 Unearned Fees ------------- ___________$2,500
May 1,2016 CApital --------------- ___________$42,300
____________________________________________________
Total =$46,050 and $46,050
_____________________________________________________
B)
Date Particulars JF Debit Credit
May 3,2015 Cash A/c Dr $4,500.
To unearned fees A/c $4,500.
(Being to record the advance paid by customer has recorded)
______________________________________________________________________________
may 5,2015 Cash A/c Dr $2,450.
To accounts Receivable A/c $2,450.
(Being cash received on account mode has recorded)
____________________________________________________________________________
May 9,2015 Miscellaneous Expenses A/c Dr $225.
To Cash A/c $225.
(Being cash paid for newspapers has recorded)
______________________________________________________________________________
May, 13, 2015 Accounts Payable A/c DR $640
To Cash A/c $640
(Being Part of the debt paid has recorded)
_____________________________________________________________________________
may 15, 2015 Accounts Receivable A/c Dr $9,180.
To Fees Earned A/c $9,180.
(Being on account service provided has recorded)
_______________________________________________________________________________
May 16,2016 Salary expense A/c Dr $750.
To Cash A/c $750.
(Being salary paid has recorded)
________________________________________________________________________
May 17,2016 Cash a/c Dr $8,360.
To Fees Earned A/c $8,360.
(Being cash from cash clients for fees earned has recorded)
_______________________________________________________________________
May 20, 2016 Supplies a/c Dr $735
To Cash a/c $735
(Being Purchased supplies on account has recorded)
__________________________________________________________________________
May 21, 2016 Accounts Receivable A/c Dr $4,820.
To Fees earned a/c $4,820.
(being services provided on account has recorded)
__________________________________________________________________________
May 25, 2016 Cash a/c Dr $7,900.
To Fees earned A/c $7,900.
(being cash from cash clients for fees earned has recorded)
___________________________________________________________________________
May 27, 2016 Cash a/c dr $9,520.
To accounts Receivable a/c $9,520.
(Being Received cash from clients Has recorded)
_________________________________________________________________________________
may 28, 2016 Salary Expense a/c Dr $750
To Cash A/c $750
(Being salary paid has recorded)
__________________________________________________________________________
May 30, 2016 Miscellaneous Expenses A/c Dr $260.
To Cash A/c $260.
(Being telephone expenses paid has recorded)
________________________________________________________________________________
May 31, 2016 Miscellaneous Expenses A/c Dr $810.
To Cash A/c $810.
(Being Electricity expenses paid has recorded)
_______________________________________________________________________________
May 31, 2016 Cash a/c Dr $3,300
To Fees earned A/c $3,300
(Being cash from cash clients for fees earned has recorded)
_____________________________________________________________________________
May 31, 2016 Accounts Receivable A/c Dr $2,650.
To Fees earned a/c $2,650.
(Being services provided on account has recorded)
____________________________________________________________________________
May 31, 2016 Dividends payable A/c dr $10,500.
To Cash a/c $10,500.
(Being dividends paid has recorded)
_______________________________________________________________________________
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