Acct300 Portfolio Project - Kelly Consulting Practice Set

Note: There are several versions of this problem (this is the 2010 version), wherein the amounts or other given might be different from what your current problem requires. If so, you can use this tutorial as a guide to understand how the problem is addressed, including calculations and solutions as well as explanations given in this tutorial. Acct300 Financial and Managerial Accounting Comprehensive Problem 1 (May 2010 Transactions) Kelly Pitney began her consulting business, Kelly consulting, P.C., on April 1, 2010. The accounting cycle for Kelly consulting for April, including financial statements, was illustrated on pages 159-170. 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, $2,500
5. Received cash from clients on account, $1,750
9. Paid cash for a newspaper advertisement, $300
13. Paid office Station Co. for part of the debt incurred on April 5, $400
15. Recorded services provided on account for the period May 1-15, $6,100
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, $8,200. 20. Purchased supplies on account, $400.
21. Recorded services provided on account for the period May 16-20 $3,900
25. Recorded cash from cash clients for fees earned fro the period May 17-23, $5,100
27. Received cash from clients on account, $ 9,500
28. Paid part-time receptionist for two weeks’ salary. $750
30. Paid telephone bill for May $120
31. Paid electricity bill for May $290
31. Recorded cash from cash clients for fees earned for the period may 26-31, $3,875
31. Recorded services provided on account for the remainder of May, $3,200
31. Kelly withdrew $8,000 for personal use. Pg. 166 Post-closing trial balance Debit Credit Cash 22,100 Accounts Receivable 3,400 Supplies 1,350 Prepaid Rent 3,200 Prepaid Insurance 1,500 Office Equipment 14,500 Accumulated Depreciation 330 Accounts Payable 800 Salaries Payable 120 Unearned Fees 2,500 Kelly Pitney, Capital 42,300 46,050 46,050

Instructions
1. The chart of accounts for Kelly Consulting is shown on page 158, and the post-closing trial balance as of April 30, 2010, is shown on page 166. 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, 2010, 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 trial balance.
4. At the end of May, the following adjustments data were assembled. Analyze and use these data to complete part
(6). a) Insurance expired during May is $300. b) Supplies on hand on May 31 are $600.
c) Depreciation of office equipment for May is $330.
d) Accrued receptionist salary on May 31 is $240.
e) Rent expired during May is $1,600 f) Unearned fees on May 31 are $2,000
5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare and adjusted trial balance.
8. Prepare and income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.
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