Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.
ID: 2486749 • 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:
At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts 5 & 6.
Insurance expired during May is $275
Supplies on hand on May 31 are $715
Depreciation of office equipment for May is $330
Accrued receptionist salary on May 31 is $325
Rent expired during May is $1,600
Unearned fees on May 31 are $3,210
5. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
Explanation / Answer
Adjusting Entry
Unadjusted Trial Balance Debit Credit Cash 22,095 Unearned Revenue 4,500 Account Receivable 4680 Advertisement Expenses 225 Note Payable -640 Service Revenue 36210 Salary Expenses 1500 Supplies 735 Account Payable 735 Telephone Bill 260 Electricity Bill 810 Drawing 10,500 Total 40,805 40805Related Questions
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