Question

Kelly Pitney moved her part-time consulting business from her home to rented quarters on April 1, 2006. Hippocrates Consulting entered the following transactions during April:
April 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.
1. Paid three months rent on a lease rental contract, $4,800.
2. Paid the premiums on property and casualty insurance policies, $1,800.
4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000.
5. Purchased additional office equipment on account from Office Station, $2,000.
6. Received cash from clients on account, $1,800.
10. Paid cash for a newspaper advertisement, $120.
12. Paid Office Station for part of the debt incurred on April 5, $1,200.
12. Recorded services provided on account for the period April 1-12, $4,200.
14. Paid part-time receptionist for two weeks' salary, $750.
17. Recorded cash from cash clients for fees earned during the period April 1-16, $6,250.
18. Paid cash for supplies, $800.
20. Recorded services provided on account for the period April 13-20, $2,100.
24. Recorded cash from cash clients for fees earned for the period April 17-24, $3,850.
26. Received cash from clients on account, $5,600.
27. Paid part-time receptionist for two weeks' salary, $750.
29. Paid telephone bill for April, $130.
30. Paid electricity bill for April, $200.
30. Recorded cash from cash clients for fees earned for the period April 25-30, $3,050.
30. Recorded services provided on account for the remainder of April, $1,500.
30. Kelly withdrew $6,000 for personal use.
PLEASE JOURNALIZE! using the following accounts:
CASH
ACCOUNTS RECEIVABLE
SUPPLIES
PREPAID RENT
PREPAID INSURANCE
OFFICE EQUIPMENT
ACCUMULATED DEPRECIATION
ACCOUNTS PAYABLE
SALARIES PAYABLE
UNEARNED FEES
KELLY PITNEY, CAPITAL
KELLY PITNEY, DRAWING
FEES EARNED
SALARY EXPENSE
RENT EXPENSE
SUPPLIES EXPENSE
DEPRECIATION EXPENSE
INSURANCE EXPENSE
MISCELLANEOUS EXPENSE
help help help!

Answer 1

Kelly Consulting
			Journal entries for May 2006
				Post
Date	Description			Ref	Debit $	Credit $
May-03	Cash			11	4500
	Unearned Fees			23		4500
	Received fees in advance
May-05	Cash			11	2450
	Accounts Receivable			12		2450
	Received cash on account from clients
May-09	Miscellaneous Expense			61	225
	Cash			11		225
	Paid for advertisement
May-13	Accounts Payable			21	640
	Cash			11		640
	Paid on account to Office Station Co
May-15	Accounts Receivable			12	9180
	Fees Earned			41		9180
	Recorded services provided May 1 to
	May-15
May-16	Salary Expense			51	750
	Salary Payable			22	120
	Cash			11		870
	Being salary paid current month of May.
	1 -15 and the past month of April
May-17	Cash			11	8360
	Fees Earned			41		8360
	Cash received from clients May 1- 16
May-20	Supplies				735
	Cash			11		735
	Supplies purchased
May-21	Accounts Receivable			12	4820
	Fees Earned			41		4820
	Recorded services provided from
	May 16 to May 20
May-25	Cash			11	7900
	Fees Earned			41		7900
	Cash received from clients.
	May 17 - 23
May-27	Cash			11	9520
	Accounts Receivable			12		9520
	Received cash on account from clients
May-28	Salary Expense			51	750
	Cash			11		750
	Being salary paid May 16 - 31
May-29	Miscellaneous			62	260
	Cash			11		260
	Being telephone bills paid
May-31	Miscellaneous			63	810
	Cash			11		810
	Being electricity bills paid
May-31	Cash			11	3300
	Fees Earned			41		3300
	Cash received from clients May 26 - 31
May-31	Accounts Receivable			12	2650
	Fees Earned			41		2650
	Recorded services provided till May 31
May-31	Kelly Drawings				10500
	Cash					10500
	Being drawing made by Kelly for
	personal use
May-31	Insurance Expense				275
	Prepaid Insurance					275
	Expired insurance
May-31	Supplies Expense				635
	Supplies					635
	Entry for supplies used during May
May-31	Depreciation Expense				330
	Accumulated Depreciation					330
	Depreciation during May
May-31	Salary Expense				325
	Salary Payable					325
	Accrued salary for May month
May-31	Rent Expense				1600
	Prepaid rent					1600
	Rent expired entry
May-31	Unearned Fees				3210
	Fees Earned					3210
	Being unearned fees
		Kelly Consulting
		Adjusted Trial Balance
		May-16					Cumulative Balance
			Apr-16		May-16		till May 2006
			Debit	Credit	Debit	Credit
			Balances	Balances	Balances	Balances
Cash			22100		35165	13925	43340	0
Accounts Receivable			3400		16650	11970	8080	0
Supplies			1350			635	715	0
Prepaid Rent			3200			1600	1600	0
Prepaid Insurance			1500			275	1225	0
Office Equipment			14500				14500	0
Accumulated Depreciation				330		330	0	660
Accounts Payable				800	640		0	160
Salaries Payable				120	120	325	0	325
Unearned Fees				2500	3210	4500	0	3790
Kelly Pitney, Capital				30000			0	30000
Kelly Pitney, Drawings			6000		10500		16500	0
Fees Earned				23450		39420	0	62870
Salary Expense			1620		1825		3445	0
Rent Expense			1600		1600		3200	0
Supplies Expense			850		1370		2220	0
Depreciation Expense			330		330		660	0
Insurance Expense			300		275		575	0
Miscellaneous Expense			450		1295		1745	0
			57200	57200	72980	72980	130180	130180
						0		0
	Kelly Consulting
		Income Statement
	For the month ended May 31, 2006
			$	$
Fees Earned				39420
Expenses
Salary expense			1825
Rent expense			1600
Supplies expense			1370
Depreciation expense			330
Insurance expense			275
Miscellaneous expense			1295	6695
Total expenses
Net Income				32725
	Kelly Consulting
	Statement of Owner's Equity
	For the month ended May 31, 2006
				$	$
	Kelly Pitney capital May 1, 2006				42300
	Investment during the month
	Net Income for the month			32725
	Less: withdrawals			-10500	22225
	Kelly Pitney capital April 30, 2006				64525
	Financial Statements
			Kelly Consulting
			Balance Sheet as of May 31, 2006
				$	$				$	$
	Current Assets					Current Liabilities
	Cash			43340		Accounts Payable			160
	Accounts receivable			8080		Salaries Payable			325
	Supplies			715		Unearned Fees			3790
	Prepaid rent			1600		Total Liabilities				4275
	Prepaid insurance			1225
	Total Current Assets				54960	Owner's Equity
	Office equipment			14500		Kelly Pitney capital				64525
	Less: accumulated depreciation			660
	Total property, plant
	and equipment				13840
						Total Liability and
	Total Assets				68800	owner's equity				68800