Question

Instructions 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 the following transactions: 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 13 15 Paid cash for a newspaper advertisement, $225. Paid Office Station Co. for part of the debt incurred on April 5, S640. Provided services on account for the period May 1-15, $9,180. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. Received cash from cash clients for fees earned during the period May 1-16, $8,360. 16 17

Answer 1

S. No	Date	Accounts	Debit	Credit
1	May-03	Cash	4,500
		Advance From Customers		4,500
2	May-05	Cash	2,450
		Debtors		2,450
3	May-09	Advertisement Expenses	225
		Cash		225
4	May-13	Outstanding Expenses	640
		Cash		640
5	May-15	Debtors	9,180
		Sales of Service		9,180
6	May-16	Salaries Payable	750
		Cash		750
7	May-17	Cash	8,360
		Sales of Service		8,360
8	May-20	Supplies	735
		Cash		735
9	May-21	Debtors	4,820
		Sales of Service		4,820
10	May-25	Cash	7,900
		Sales of Service		7,900
11	May-27	Cash	9,520
		Debtors		9,520
12	May-28	Salary	750
		Cash		750
13	May-30	Telephone Expenses	260
		Cash		260
14	May-31	Electricity Expenses	810
		Cash		810
15	May-31	Cash	3,300
		Sales of Service		3,300
16	May-31	Advance From Customers	2,650
		Sales of Service		2,650
17	May-31	Drawings	10,500
		Cash		10,500
18	May-31	Insurance Expenses	275
		Outstanding Expenses		275
19	May-31	Profit & Loss	20
		Supplies		20
20	May-31	Depreciation	330
		Office Equipment		330
21	May-31	Salary	325
		Salaries Payable		325
22	May-31	Rent Expenses	1,600
		Outstanding Expenses		1,600
23	May-31	Cash	3,210
		Advance From Customers		3,210
			73,110	73,110