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Accounting Comprehensive Problem 1.

1. Create a Journal

1. C.Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Do not insert the account numbers in the journal at this time.)
2. B. Add the appropriate posting reference to the journal in CengageNOW.
6. A.Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
6. C.Add the appropriate posting reference to the journal in CengageNOW. 2. Create A Ledger SPREADSHEET  and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts.  Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem.  Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 1. B. 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, enter Balance in the Item column and enter ‘X’ in the Posting Reference column. 2. A. Post the May transactions from the journal to a ledger of four-column accounts. 6. B. Post the adjusting entries to the ledger of four-column accounts, inserting balances in the accounts affected.

3. Prepape a Unadjusted Trial Balance

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. 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:

May3Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
5Received cash from clients on account, $2,450.
9Paid cash for a newspaper advertisement, $225.
13Paid Office Station Co. for part of the debt incurred on April 5, $640.
15Provided services on account for the period May 1–15, $9,180.
16Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.
17Received 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:

May20Purchased supplies on account, $735.
21Provided services on account for the period May 16–20, $4,820.
25Received cash from cash clients for fees earned for the period May 17–23, $7,900.
27Received cash from clients on account, $9,520.
28Paid part-time receptionist for two weeks’ salary, $750.
30Paid telephone bill for May, $260.
31Paid electricity bill for May, $810.
31Received cash from cash clients for fees earned for the period May 26–31, $3,300.
31Provided services on account for the remainder of May, $2,650.
31Kelly withdrew $10,500 for personal use.
Required:
1.The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2019, is shown below. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer.  Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem.  Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. 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, 2019, enter Balance in the Item column and enter ‘X’ in the Posting Reference column. C. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Do not insert the account numbers in the journal at this time.)
2.Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts. A. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. B. Add the appropriate posting reference to the journal.
3.Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.
4.At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (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.(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.
6.A. Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles. B. Post the adjusting entries to the ledger, inserting balances in the accounts affected. C. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.
7.Prepare an adjusted trial balance. Accounts with zero balances can be left blank.

Kelly Consulting

POST-CLOSING TRIAL BALANCE

April 30, 2019

ACCOUNT TITLEDEBITCREDIT
1Cash22,100.00 
2Accounts Receivable3,400.00 
3Supplies1,350.00 
4Prepaid Rent3,200.00 
5Prepaid Insurance1,500.00 
6Office Equipment14,500.00 
7Accumulated Depreciation 330.00
8Accounts Payable 800.00
9Salaries Payable 120.00
10Unearned Fees 2,500.00
11Kelly Pitney, Capital 42,300.00
12Totals46,050.0046,050.00