Prepare a post-closing trial balance for kelly pitney

Reference no: EM131894952

Problem

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: May 3. 5. 9. 13. 15. 16. 17. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. Received cash from clients on account, $2,450. Paid cash for a newspaper advertisement, $225. Paid Office Station Co. for part of the debt incurred on April 5, $640. Recorded services provided on account for the period May 1-15, $9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. Record the following transactions on Page 6 of the journal: 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 Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial 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 starting on Page 5 of the journal and 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 trial balance.

4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during May is $275.

b. Supplies on hand on May 31 are $715.

c. Depreciation of office equipment for May is $330.

d. Accrued receptionist salary on May 31 is $325.

e. Rent expired during May is $1,600.

f. 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. Record the adjusting entries on Page 7 of the journal.

7. Prepare an adjusted trial balance.

8. Prepare an income statement, a statement of owner's equity, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.

10. Prepare a post-closing trial balance.

Account numbers were not provided to me, so please dont ask for them.

Reference no: EM131894952

Questions Cloud

How a light bulb produce light : Why does passing an electric current through the metal filament of a light bulb produce light?

Explain the number of obligations and the time frame : Clearly explain the number of obligations, what is included in each, and the time frame over which the revenue would be recognized.

What is kellys six month accounting profit : What will Kelly's six month Economic Profit be when the legislation takes effect? What is Kelly's six month Accounting Profit?

Focus on measuring and rewarding performance : As more and more payers focus on measuring and rewarding performance, issues arise about how to use that process to motivate continuous quality improvement.

Prepare a post-closing trial balance for kelly pitney : Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. Prepare a post-closing trial balance.

Determine the return shareholders are expecting : Paychex Inc. (PAYX) recently paid an $0.84 dividend. The dividend is expected to grow at a 10 percent rate. The current stock price is $49.71.

The patient protection and affordable care act : Present and discuss any three of these important impacts, and discuss how you, as a healthcare administrator, will respond to these changes.

What is kellys basis for her partnership interest : The partners share the economic risk of loss from recourse liabilities according to partnership interests. What is Kelly's basis for her partnership interest?

Prepare an amortization schedule for the first two payments : Prepare an amortization schedule for the first two payments. Journalize the first payment on January 31 2016. Journalize the second payment on February 29 2016.

User Account

All Pages