Question

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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, $640. Recorded services provided 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. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360. 16 17 Record the following transactions on Page 6 of the journal: May 20 Purchased supplies on account, $735. Recorded services provided on account for the period May 16-20, $4,820. 21 25 Recorded cash from cash clients for fees earned for the period May 17-23, $7,900. Received cash from account, $9,520. 28 30 Paid part-time receptionist for two weeks' salary, $750. Paid telephone bill for May, $260. Paid electricity bill for May, $810. 31 31 Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.

Answer 1

(1) Journalize each of the May transactions: Post Ref. Date Description May 3 Cash Unearned Fees Received cash from client in advance Debit (S) Credit (S) $4,500 $4,500 Date Description May 5 Cash Accounts receivable Cash received from clients on account Post Ref. Debit ($) Credit (S) $2,450 $2,450 Date Description May 9 Miscellaneous expenses - Advertising Accounts receivable Paid advertising expense Post Ref. Debit (S) Credit (S) $225 $225 Date Description May 13 Accounts payable Cash Cash paid for debt Post Ref. Debit (S) Credit (S) $640 $640 Post Ref. Date Description May 15 Accounts Receivable Fees earned Service rendered in account Debit (S) Credit (S) $9,180 $9,180 Post Ref. Date Description May 16 Salaries expense Salaries payable Cash Salary paid to part time receptionist Debit (S) Credit (S) $630 $120 $750