1. Analyze and Record Transactions in a Journal 2. Post Transactions to the Ledger 3. Prepare an Unadjusted Trial Balance 4. Assemble and Analyze Adjustment Data 5. Journalize and Post Adjusting Entries 6. Prepare an Adjusted Trial Balance 7. Prepare Financial Statements You have operated a part-time consulting business from your home. As of April 1, 2012, you 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. 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 (3) 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 co, $2,000 6 Received cash from clients on acc\ount, $1,800 10 Paid cash for a newspaper advertisement, $120 12 Paid Office Station Co, 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 17-20, $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 The Company’s chart of accounts is useful in determining which accounts are affected by the transaction. The chart of accounts for Kelly Consulting is as follows: 11 Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 18 Office Equipment 52 Rent Expense 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 22 Salaries Payable 55 Insurance Expense 23 Unearned Fees 59 Miscellaneous Expense Journal Date Description Post Ref Debit Credit April 1 Cash 11 Accounts Receivable 12 Supplies 14 Office Equipment 18 Kelly Pitney, Capital 31 1 2 4 5 6 10 12 12 Accounts Receivable 12 Fees Earned 4 ...

1. 1. Analyze and Record Transactions in a Journal
2. Post Transactions to the Ledger
3. Prepare an Unadjusted Trial Balance
4. Assemble and Analyze Adjustment Data
5. Journalize and Post Adjusting Entries
6. Prepare an Adjusted Trial Balance
7. Prepare Financial Statements
You have operated a part-time consulting business from your
home. As of April 1, 2012, you 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.
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 (3) 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 co, $2,000
6
Received cash from clients on account, $1,800
10
Paid cash for a newspaper advertisement, $120
12
Paid Office Station Co, for part of the debt incurred on April 5,
$1,200

2. 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 17-20, $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
The Company’s chart of accounts is useful in determining which

3. accounts are affected by the transaction. The chart of accounts
for Kelly Consulting is as follows:
11 Cash
31 Kelly Pitney, Capital
12 Accounts Receivable
32 Kelly Pitney, Drawing
14 Supplies
33 Income Summary
15 Prepaid Rent
41 Fees Earned
16 Prepaid Insurance
51 Salary Expense
18 Office Equipment
52 Rent Expense
19 Accumulated Depreciation
53 Supplies Expense
21 Accounts Payable
54 Depreciation Expense
22 Salaries Payable
55 Insurance Expense
23 Unearned Fees
59 Miscellaneous Expense
Journal
Date
Description
Post Ref
Debit
Credit
April
1
Cash

4. 11
Accounts Receivable
12
Supplies
14
Office Equipment
18
Kelly Pitney, Capital
31
1

5. 2
4

6. 5
6

7. 10
12

8. 12
Accounts Receivable
12
Fees Earned
41
14

9. 17
18

10. 20
24

11. 26
27

12. 29
Miscellaneous Expense
59
Cash
11
30

13. 30
30

14. 30
Kelly Pitney, Drawing
Cash
1. Insurance expired during April is $300

15. 2. Supplies on hand on April are $1,350
3. Depreciation of office equipment for April is $330
4. Accrued receptionist salary on April 30 is $120
5. Rent expired during April is $1,600
6. Unearned fees on April 30 are $2,500.
Journal
Date
Description
Post Ref
Debit
Credit
Adjusting Entries
April
30
Insurance Expense
Prepaid Insurance

16. (Expired Insurance)

19. Kelly Consulting
Adjusted Trial Balance

20. April 30, 2012
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Kelly Pitney, Capital
Kelly Pitney, Drawing

21. Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Total
57,200
57,200
Kelly Consulting
Income Statement
For the Month Ended April 30, 2012
Fees earned
Expenses:

22. Salary expense
Rent expense
Supplies expense
Depreciation expense
Insurance expense
Miscellaneous expense
Total expense
Net Income
Kelly Consulting
Statement of Owner’s Equity
For the Month Ended April 30, 2012
Kelly Pitney, capital, April 1, 2012
$0
Investment during the month
$30,000
Net income for the month

23. Less withdrawals
Increase in owner’s equity
Kelly Pitney, capital April 30, 2012

24. Kelly Consulting
Balance Sheet
April 30, 2012
Cash Office
Equipment Fees Earned
4/14/14/12
4/14/54/17
4/24/20
4/44/24
4/64/30
4/104/30
4/124/30
4/14
4/17 Accumulated Depreciation
Salary Expense
4/184/304/14
4/244/27
4/264/30
4/27 Accounts Payable
4/294/5
4/304/12
4/30
4/30
Salaries Payable Rent Expense
4/304/30
Accounts Receivble
4/1
4/6
4/12 Unearned Fees Supplies
Expense
4/204/44/30

25. 4/264/30
4/30
Kelly Pitney, Capital Depreciation
Expense
4/14/30
Supplies
4/1
4/18
4/30Adjusting $850 Insurance Expense
4/30
Prepaid Rent Kelly Pitney,
Drawings
4/14/30
4/30Adjusting $1600
Prepaid Insurance Miscellaneous
Expense
4/24/10
4/30Adjusting $4/29
4/30