Comprehensive Problem 1 Part 1:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below:
| 11 | Cash | 32 | Retained Earnings |
| 12 | Accounts Receivable | 33 | Dividends |
| 14 | Supplies | 41 | Fees Earned |
| 15 | Prepaid Rent | 51 | Salary Expense |
| 16 | Prepaid Insurance | 52 | Rent Expense |
| 18 | Office Equipment | 53 | Supplies Expense |
| 19 | Accumulated Depreciation | 54 | Depreciation Expense |
| 21 | Accounts Payable | 55 | Insurance Expense |
| 22 | Salaries Payable | 59 | Miscellaneous Expense |
| 23 | Unearned Fees | | |
| 31 | Common Stock | | |
The post-closing trial balance as of April 30, 20Y8, is shown below:
| Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 |
| | Account No. | Debit | Credit |
| Cash | 11 | 22,100 | |
| Accounts Receivable | 12 | 3,400 | |
| Supplies | 14 | 1,350 | |
| Prepaid Rent | 15 | 3,200 | |
| Prepaid Insurance | 16 | 1,500 | |
| Office Equipment | 18 | 14,500 | |
| Accumulated Depreciation | 19 | | 330 |
| Accounts Payable | 21 | | 800 |
| Salaries Payable | 22 | | 120 |
| Unearned Fees | 23 | | 2,500 |
| Common Stock | 31 | | 30,000 |
| Retained Earnings | 32 | | 12,300 |
| | | 46,050 | 46,050 |
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) If an amount box does not require an entry, leave it blank.
May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
| Description | Post. Ref. | Debit | Credit |
- Accounts Receivable
- Cash
- Fees Earned
- Prepaid Rent
- Unearned Fees
| | | |
- Accounts Receivable
- Cash
- Fees Earned
- Prepaid Rent
- Unearned Fees
| | | |
May 5: Received cash from clients on account, $2,450.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 9: Paid cash for a newspaper advertisement, $225.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Rent Expense
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Supplies Expense
| | | |
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Office Equipment
- Supplies Expense
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Office Equipment
- Supplies Expense
| | | |
May 15: Recorded services provided on account for the period May 115, $9,180.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Salary Expense
| | | |
- Accounts Receivable
- Cash
- Fees Earned
- Salaries Payable
- Unearned Fees
| | | |
- Accounts Payable
- Cash
- Fees Earned
- Salaries Payable
- Salary Expense
| | | |
May 17: Recorded cash from cash clients for fees earned during the period May 116, $8,360.
| Description | Post. Ref. | Debit | Credit |
- Accounts Receivable
- Cash
- Fees Earned
- Salary Expense
- Unearned Fees
| | | |
- Accounts Payable
- Cash
- Fees Earned
- Salaries Payable
- Unearned Fees
| | | |
May 20: Purchased supplies on account, $735.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Office Equipment
- Supplies
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Supplies
- Supplies Expense
| | | |
May 21: Recorded services provided on account for the period May 1620, $4,820.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 25: Recorded cash from cash clients for fees earned for the period May 1723, $7,900.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 27: Received cash from clients on account, $9,520.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 28: Paid part-time receptionist for two weeks' salary, $750.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Cash
- Miscellaneous Expense
- Salaries Payable
- Salary Expense
| | | |
- Accounts Payable
- Cash
- Salaries Payable
- Salary Expense
- Unearned Fees
| | | |
May 30: Paid telephone bill for May, $260.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Supplies Expense
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Supplies
| | | |
May 31: Paid electricity bill for May, $810.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Office Equipment
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Miscellaneous Expense
- Supplies
| | | |
May 31: Recorded cash from cash clients for fees earned for the period May 2631, $3,300.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 31: Recorded services provided on account for the remainder of May, $2,650.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
- Accounts Payable
- Accounts Receivable
- Cash
- Fees Earned
- Unearned Fees
| | | |
May 31: Paid dividends, $10,500.
| Description | Post. Ref. | Debit | Credit |
- Accounts Payable
- Cash
- Dividends
- Miscellaneous Expense
- Retained Earnings
| | | |
- Accounts Payable
- Cash
- Dividends
- Miscellaneous Expense
- Retained Earnings
| | | |
