Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.D
ID: 2456969 • Letter: K
Question
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.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. Kelly withdrew $10,500 for personal use.
Instructions:
1. The chart of accounts for Kelly Consulting is shown in Ex9 (below), and the post-closing trial balance as of April 30, 2016, is shown in Ex17(below). For each account in the post-closing trail balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark in the Posting Reference column. Journalize each of the May transactions in a two-column journal 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.
3. Prepare an unadjusted trail balance.
Ex9:
6,000
EX17:
Journal Date 2016 Description Post Ref. Debit Credit 1-Apr Cash 11 13,100 Accounts Receivable 12 3,000 Supplies 14 1,400 Office Equipment 18 12,500 Kelly Pitney, Capital 31 30,000 1-Apr Prepaid Rent 15 4,800 Cash 11 4,800 2-Apr Prepaid Insurance 16 1,800 Cash 11 1,800 4-Apr Cash 11 5,000 Unearned Fees 23 5,000 5-Apr Office Equipment 18 2,000 Accounts Payable 21 2,000 6-Apr Cash 11 1,800 Accounts Receivable 12 1,800 10-Apr Misc. Expense 59 120 Cash 11 120 12-Apr Accounts Payable 21 1,200 Cash 11 1,200 12-Apr Accounts Receivable 12 4,200 Fees Earned 41 4,200 14-Apr Salary Expense 51 750 Cash 11 750 17-Apr Cash 11 6,250 Fees Earned 41 6,250 18-Apr Supplies 14 800 Cash 11 800 20-Apr Accounts Receivable 12 2,100 Fees Earned 41 2,100 24-Apr Cash 11 3,850 Fees Earned 41 3,850 26-Apr Cash 11 5,600 Accounts Receivable 12 5,600 27-Apr Salary Expense 51 750 Cash 11 750 29-Apr Misc. Expense 59 130 Cash 11 130 30-Apr Misc. Expense 59 200 Cash 11 200 30-Apr Cash 11 3,050 Fees Earned 41 3,050 30-Apr Accounts Receivable 12 1,500 Fees Earned 41 1,500 30-Apr Kelly Pitney, Drawing 32 6,000 Cash 116,000
Explanation / Answer
1)
Post close
Date Particulars Debit Credit Balance Debit Credit
May 1, 2016 Cash 22,100 --------------- 22,100 ---------------
May 1, 2016 Accounts Receivable 3,400 --------------- 3,400 ---------------
May 1, 2016 Supplies 1,350 --------------- 1,350 ---------------
May 1, 2016 Prepaid Rent 3,200 --------------- 3,200 ---------------
May 1, 2016 Prepaid Insurance 1,500 --------------- 1,500 ---------------
May 1, 2016 Office Equipment 14,500 --------------- 14,500 ---------------
May 1, 2016 Acc.Depreciation ----------------------- 330 ----------------------- 330
May 1, 2016 Accounts Payable ----------------------- 800 ----------------------- 800
May 1, 2016 Salaries Payable ----------------------- 120 ----------------------- 120
May 1, 2016 Unearned Fees ----------------------- 2,500 ----------------------- 2,500
May 1, 2016 Kelly Pitney, Capital ----------------------- 42,300 ----------------------- 42,300
________________________________________________________________________________
Total $ 46,050 $ 46,050 $ 46,050 $ 46,050
__________________________________________________________________________________
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 Kelly Drawing A/c Dr $10,500
To Cash A/c $10,500
(being withdrawn has recorded)
_____________________________________________________________________________
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