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Comprehensive Problem 1 Part 8:

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.

NOTE: You must complete parts 1, 2, 3, 4, 6 and 7 before completing part 8. Part 5 is optional.

Prepare an income statement.

Kelly Consulting Income Statement For the Month Ended May 31, 2014
selectFees earnedInsurance expenseRent expenseSalary expenseItem 1
Expenses:
selectCashFees earnedSalary expenseSalaries payableItem 3
selectCashOffice equipmentPrepaid rentRent expenseItem 5
selectAccounts receivableFees earnedSuppliesSupplies expenseItem 7
selectAccounts payableAccumulated depreciationDepreciation expenseUnearned feesItem 9
selectCashFees earnedInsurance expensePrepaid insuranceItem 11
selectAccounts payableAccounts receivableIncome summaryMiscellaneous expenseItem 13
selectFees earnedIncome summaryKelly Pitney, capitalTotal expensesItem 15
selectKelly Pitney, drawingIncome summaryNet incomeNet lossItem 17

Prepare a statement of owner's equity.

Kelly Consulting Statement of Owner's Equity For the Month Ended May 31, 2014
SelectDecrease in owner's equityIncrease in owner's equityKelly Pitney, capital, May 31, 2014Kelly Pitney, capital, May 1, 2014Net income for the monthNet loss for the monthLess withdrawalsPlus withdrawalsItem 19
SelectDecrease in owner's equityIncrease in owner's equityKelly Pitney, capital, May 31, 2014Kelly Pitney, capital, May 1, 2014Net income for the monthNet loss for the monthPlus withdrawalsItem 21
SelectDecrease in owner's equityIncrease in owner's equityKelly Pitney, capital, May 31, 2014Kelly Pitney, capital, May 1, 2014Net loss for the monthLess withdrawalsPlus withdrawalsItem 23
SelectDecrease in owner's equityIncrease in owner's equityKelly Pitney, capital, May 31, 2014Kelly Pitney, capital, May 1, 2014Net income for the monthNet loss for the monthLess withdrawalsPlus withdrawalsItem 25
SelectDecrease in owner's equityIncrease in owner's equityKelly Pitney, capital, May 31, 2014Kelly Pitney, capital, May 1, 2014Net income for the monthNet loss for the monthLess withdrawalsPlus withdrawalsItem 27

Prepare a balance sheet.

Kelly Consulting Balance Sheet May 31, 2014
Assets			Liabilities
Current assets:			Current liabilities:
SelectCashFees earnedOffice equipmentKelly Pitney, capitalUnearned feesItem 29			SelectAccounts payableAccounts receivableCashKelly Pitney, capitalKelly Pitney, drawingItem 31
SelectAccounts payableAccounts receivableFees earnedSalaries payableUnearned feesItem 33			SelectAccounts receivablePrepaid insurancePrepaid rentSalaries payableSalary expenseItem 35
SelectAccounts payableFees earnedSuppliesSupplies expenseUnearned feesItem 37			SelectAccounts receivableFees earnedKelly Pitney, capitalKelly Pitney, drawingUnearned feesItem 39
SelectAccounts payableMiscellaneous expenseOffice equipmentPrepaid rentRent expenseItem 41
SelectCashInsurance expensePrepaid insuranceSalaries payableSupplies expenseItem 43			Total liabilities
Total current assets
Property, plant, and equipment:
SelectAccounts payableFees earnedOffice equipmentPrepaid insuranceRent expenseItem 47			Owner's Equity
SelectLess: accounts payableLess: accumulated depreciationLess: depreciation expenseLess: office equipment Less: unearned feesItem 49			SelectAccounts receivableFees earnedKelly Pitney, capitalKelly Pitney, drawingSalaries payableItem 52
Total assets			Total liabilities and owner's equity

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