Kelly Pitney began her consulting business, Kelly consulting P.C., on April 1, 2012. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated on pages 163-173. 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, $3,000. 5. Received cash from clients on accounts, $2,100. 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, $7,350. 16. Paid part-time receptionist for two weeks; salary including the amount owed on April 30, $750. Record the following transactions on Page 6 of the journal. 17. Recorded cash from cash clients for fees earned during the period May 1-16, $6,150. 20. Purchased supplies on account, $600. 21. Recorded services provided on account for the period May 16-20, $6,175. 25. Recorded cash from cash clients for fees earned for the period May 17-23, $3,125. 27. Received cash from clients on account, $11,250. 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, $2,800. 31. Recorded services provided on account for the remainder of May, $1,900. 31. Paid dividends of $15,000. Instructions 1. The chart of accounts for Kelly Consulting is shown on page 164, and the post-closing trial balance as of April 30, 2012, is shown on page 171. 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, 2012, 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 Consultant 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 $300. b. Supplies on hand on May 31 are $750. c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $300. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $1,500. 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 Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statements, 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 =3/1 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.
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In groups of three or four, compare the balance sheets of two different companies, and present to the class a summary of the similarities and differences of the two companies. You may obtain the balance sheets you need from one of the following sources:
1. You school or local library. 2. The investor relations department of each company. 3. The company Web site on the Internet. 4. EDGAR (Electronic Data Gathering, Analysis, and Retrieval) the electronic archives of financial statements filed with the Securities and Exchange Commission. SEC documents can be retrieved using the EdgarScanTM service at To obtain annual report information, click on Search for Company Filling click on Companies & other Filers type in the company name, and then click on Find Companies.†Click on the CIK related to the company name, search for Form 10-K, and click Retrieve Selected Findings.Finally, click on the html for the latest period and the related document. Laser Graphics is a graphics arts design consulting firm. Spencer Lowry, its treasurer and vice president of finance, has prepared a classified balance sheet as of March 31, 2012, the end of its fiscal year. This balance sheet will be submitted with Laser Graphics load application to American Trust & Savings Bank.
In the Current Assets section of the balance sheet, Spencer reported a $90,000 receivable from Jackie Doyle, the president of Laser Graphics, as a trade account receivable. Jackie borrowed the money from Laser Graphics in April 2010 for a down payment on a new bome. She has orally assured Spencer that she will pay off the account receivable within the next year. Spencer reported the $90,000 in the same manner on the preceding year balance sheet. Evaluate whether it is acceptable for Spencer to prepare the March 31, 2010, balance sheet in the manner indicated above. Based on the data in Exercise 4-25, prepare the adjusting entries for Zeidman Security Services Co.10/14/2015 Based on the data in Exercise 4-25, prepare the adjusting entries for Zeidman Security Services Co.
Zeidman Security Services Co offers security services to business clients. The trial balance for Zeidman Security Services Co. has been prepared on the end-of-period spreadsheet (work sheet) for the year ended July 31, 2012, shown below. The data for year-end adjustments are as follows: a. Fees earned, but not yet billed, $9. b. Supplies on hand, $3. c. Insurance premiums expired, $8. d. Depreciation expense, $4. e. Wages accrued, but not paid, $1. Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. List (a) through (j) in the order they would be performed in preparing and completing an end-of-period spreadsheet (work sheet)
a. Add the Debit and Credit columns of the Unadjusted Trial Balance columns of the spreadsheet (work sheet) to verify that the totals are equal. b. Add the Debit and Credit columns of the Balance Sheet and Income Statement columns of the spreadsheet (work sheet) to verify that the totals are equal. c. Add or deduct adjusting entry data to trial balance amounts, and extend amounts to the Adjusted Trial Balance columns. d. Add the Debit and Credit columns of the Adjustments columns of the spreadsheet (work sheet) to verify that the totals are equal. e. Add the Debit and Credit columns of the Balance Sheet and Income Statement columns of the spreadsheet (work sheet) to determine the amount of net income or net loss for the period. f. Add the Debit and Credit columns of the Adjusted Trial Balance columns of the spreadsheet (work sheet) to verify that the totals are equal. g. Enter the adjusting entries into the spreadsheet (work sheet), based on the adjustment data. h. Enter the amount of net income or net loss for the period in the proper Income Statement column and Balance Sheet column. i. Enter the unadjusted account balances from the general ledger into the unadjusted Trial Balance columns of the spreadsheet (work sheet). j. Extend the adjusted trial balance amounts to the Income Statement columns and the Balance Sheet columns. Rearrange the following steps in the accounting cycle in proper sequence:
a. Financial statements are prepared. b. An adjusted trial balance is prepared. c. Adjustment data are assembled and analyzed. d. Adjusting entries are journalized and posted to the ledger. e. Closing entries are journalized and posted to the ledger. f. An unadjusted trial balance is prepared. g. Transactions are posted to the ledger. h. Transactions are analyzed and recorded in the journal. i. An optional end-of-period spreadsheet (work sheet) is prepared. j. A post-closing trial balance is prepared. An accountant prepared the following post-closing trial balance.Prepare a corrected post-closing trial balance, Assume that all accounts have normal balance and that the amounts shown are correct.
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May 2021
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