acc 201 comprehensive problem 1

Post ID: 3337178

INSTRUCTIONS

May	3	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
	5	Received cash from clients on account, $2,450.
	9	Paid cash for a newspaper advertisement, $225.
	13	Paid Office Station Co. for part of the debt incurred on April 5, $640.
	15	Provided services on account for the period May 1–15, $9,180.
	16	Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.
	17	Received 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:

May	20	Purchased supplies on account, $735.
	21	Provided services on account for the period May 16–20, $4,820.
	25	Received 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	Received cash from cash clients for fees earned for the period May 26–31, $3,300.
	31	Provided services on account for the remainder of May, $2,650.
	31	Kelly withdrew $10,500 for personal use.

Required:

The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 20Y5, 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, 20Y5, 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. (Do not insert the account numbers in the journal at this time.)

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.

Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.

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.

(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.

A.	Journalize the adjusting entries on Page 7 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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.

Prepare an adjusted trial balance. Accounts with zero balances can be left blank.
CHART OF ACCOUNTS
Kelly Consulting
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation

LIABILITIES
21 Accounts Payable
22 Salaries Payable
23 Unearned Fees

EQUITY
31 Kelly Pitney, Capital
32 Kelly Pitney, Drawing

REVENUE
41 Fees Earned

EXPENSES
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense
55 Insurance Expense
59 Miscellaneous Expense

JOURNAL

1. C.

Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. (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.

6. C.

Add the appropriate posting reference to the journal in CengageNOW.

Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Note: Scroll down for pages 6 and 7 of the journal.

PAGE 5

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

PAGE 6

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

PAGE 7

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11
12
13

Ledger

Download the attached

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.

unadjusted trail balancce

3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.

Kelly Consulting

UNADJUSTED TRIAL BALANCE

May 31, 20Y5

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Rent
5	Prepaid Insurance
6	Office Equipment
7	Accumulated Depreciation
8	Accounts Payable
9	Salaries Payable
10	Unearned Fees
11	Kelly Pitney, Capital
12	Kelly Pitney, Drawing
13	Fees Earned
14	Salary Expense
15	Rent Expense
16	Supplies Expense
17	Depreciation Expense
18	Insurance Expense
19	Miscellaneous Expense
20	Totals

adjusted trail balance

7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.

Kelly Consulting

ADJUSTED TRIAL BALANCE

May 31, 20Y5

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Prepaid Rent
5	Prepaid Insurance
6	Office Equipment
7	Accumulated Depreciation
8	Accounts Payable
9	Salaries Payable
10	Unearned Fees
11	Kelly Pitney, Capital
12	Kelly Pitney, Drawing
13	Fees Earned
14	Salary Expense
15	Rent Expense
16	Supplies Expense
17	Depreciation Expense
18	Insurance Expense
19	Miscellaneous Expense
20	Totals

Part 2

(Note: This assignment is meant to be completed in two parts. The spreadsheet download link is found in Part 1, and the completed spreadsheet is necessary to complete Part 2.)

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y5. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into transactions. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

Required:

8. Having completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner’s equity, and a balance sheet. If you didn’t complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner’s equity, and a balance sheet. Be sure to read the instructions above each statement carefully.

A.	Prepare the closing entries on Page 8 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
B.	Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal in CengageNOW.

10. Prepare a post-closing trial balance.