Question

Assume that for several years Kelly Pitney has operated a part-time consulting business from her home. As of April 1, 2016, Kelly decided to move to rented quarters and to operate the business on a full-time basis. The business will be known as Kelly Consulting. During April, Kelly Consulting entered into the following transactions:

4/1       The following assets were received from Kelly Pitney: cash $13,100; accounts receivable $3,000; supplies $1,400; and office equipment $12,500. There were no liabilities received.

4/1       Paid three months’ rent on a lease rental contract, $4,800

4/2       Paid in advance the premiums on property and casualty insurance policies, $1,800

4/4       Received cash from clients as an advance payment for services to be provided $5,000

4/5       Purchased additional office equipment on account from Office Station Co $2,000

4/6       Received cash from clients on account $1,800

4/10     Paid cash for a newspaper advertisement $120

4/12     Paid Office Station Co for part of the debt incurred on April 5, $1,200

4/12     Recorded services provided on account for the period April 1 – 12, $4,200

4/14     Paid part-time receptionist for two weeks’ salary, $750

4/17     Recorded cash from cash clients for services during the period April 1 – 16 $6,250

4/18     Paid cash for supplies $800

4/20     Recorded services provided on account for the period April 13 – 20 $2,100

4/24     Recorded cash from cash clients for services for the period April 17 – 24 $3,850

4/26     Received cash from clients on account $5,600

4/27     Paid part-time receptionist for two weeks’ salary $750

4/29     Paid telephone bill for April $130

4/30     Paid electricity bill for April $200

4/30     Recorded cash from cash clients for services for the period April 25 – 30 $3,050

4/30     Recorded services provided on account for the remainder of April $1,500

4/30     Kelly withdrew $6,000 for personal use

Record the transactions in the General Journal

General Journal

For the month ended April 30, 2016

Answer 1

ا Debit USD Kelly Consulting General Journal Credit USD Date Particulars 2016 13,000 471 Cash Al Account Reievable Al Day 3,000 Supplies Alc 1,400 Office Equipment Alc Dr 12.500 30,000 To Kelly's Capital Al 14,800 4/1 Prepaid Rent All To, Cash ALC 4.800 1,800 14/2 Prepaid Insurance Ale To Cash Ale 1.800 14/4 5,000 Cash ALL To Income received in advance Ale 5,ooo 4/5 Office Equipment All 12,000 To accounts payable Dr Cash Alc 416 To Account Receivable Ale 1800 14/10 Advertisemeul Expense All To, Cash 4/12 Account receivable All 14,200 To Beerweede beness Consulting dee 750 4114 Salary All To Cash Ale 4/17 Cash Alc 6,250 To Consulting Fee All 6,250 4/18 Supplies Ale 800 To Cash 800 Account Receivable ALC 4/201 2,100 To Consulting Fee Ale 2,000 1.800 120 120 4,200 Dr 750 Dr Dr 2100

Dr 3,850 3,850 15,600 5,600 750 4/24 I Cash ALC To Consulting Fee Ale 4/26 Cash All To account receivable Ale 14/27 Salary All To Eash Al 4/29 Telephone Bill Al To Cash Ale 4/30 Electricity Bill Ale To Cash ALL ㅋ 750 130 130 200 200 Dr 3050 4130 Cash Al 13,050 To Consulting Fee Ale Account Receivable Ale Dr 1500 4/30 1500 16,000 To Consulting Fee All 4130 Drawing Ale 6,000 To, Cash Ale 180,700/80,700