Posted: November 4th, 2015
comprehensive problem 1
Part 1
Comprehensive Problem 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, P.C., on April 1, 2014. The chart of accounts for Kelly Consulting is shown below:
The post-closing trial balance as of April 30, 2014, is shown below:
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.) For a compound transaction, 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 |
|---|---|---|---|
May 5: Received cash from clients on account, $2,450.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 9: Paid cash for a newspaper advertisement, $225.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 15: Recorded services provided on account for the period May 1–15, $9,180.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 16: Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 20: Purchased supplies on account, $735.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 21: Recorded services provided on account for the period May 16–20, $4,820.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 27: Received cash from clients on account, $9,520.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 28: Paid part-time receptionist for two weeks’ salary, $750.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 30: Paid telephone bill for May, $260.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 31: Paid electricity bill for May, $810.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 31: Recorded services provided on account for the remainder of May, $2,650.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
May 31: Paid dividends, $10,500.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
Comprehensive Problem 1
Part 2 and Part 3:
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 part 1 before completing parts 2 and 3.
Part 2: Using the attached spreadsheet, post the journal entries from part 1 to a ledger of four-column accounts.
Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
| Kelly Consulting Unadjusted Trial Balance May 31, 2014 |
||
|---|---|---|
| Account Title | Debit | Credit |
Comprehensive Problem 1
Part 4 and Part 6:
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 and 3 before completing parts 4 and 6. Please note that part 5 is optional.
Part 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.
Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2.
a. Insurance expired during May is $275.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
b. Supplies on hand on May 31 are $715.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
c. Depreciation of office equipment for May is $330.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
d. Accrued receptionist salary on May 31 is $325.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
e. Rent expired during May is $1,600.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
f. Unearned fees on May 31 are $3,210.
| Account Name | Post. Ref. | Debit | Credit |
|---|---|---|---|
|
|
Comprehensive Problem 1
Part 5: Work Sheet
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 before completing part 5.
Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
- 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.
If an amount box does not require an entry, leave it blank or enter “0”.
| Kelly Consulting End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 2014 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | ||||||
| Account Title | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit |
| Cash | ||||||||||
| Accounts Receivable | ||||||||||
| Supplies | ||||||||||
| Prepaid Rent | ||||||||||
| Prepaid Insurance | ||||||||||
| Office Equipment | ||||||||||
| Accum. Depreciation | ||||||||||
| Accounts Payable | ||||||||||
| Salaries Payable | ||||||||||
| Unearned Fees | ||||||||||
| Capital Stock | ||||||||||
| Retained Earnings | ||||||||||
| Dividends | ||||||||||
| Fees Earned | ||||||||||
| Salary Expense | ||||||||||
| Rent Expense | ||||||||||
| Supplies Expense | ||||||||||
| Depreciation Expense | ||||||||||
| Insurance Expense | ||||||||||
| Miscellaneous Expense | ||||||||||
| Net Income | ||||||||||
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