For the past several years, Emily Page has operated a part-time consulting business from her home. As of June 1, 2010, Emily decided to move to rented quarters and tooperate the business, which was to be known as Bottom Line Consulting, on a full-timebasis. Bottom Line Consulting entered into the following transactions during June:

June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received.

1. Paid three months’ rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies, $2,400.
3. Received cash from clients as an advance payment for services to be provided and recorded it as

unearned fees, $2,700.

1. Purchased additional office equipment on account from Office Depot Co., $3,500.
2. Received cash from clients on account, $3,000.
3. Paid cash for a newspaper advertisement, $200.
4. Paid Office Depot Co. for part of the debt incurred on June 5, $750.
5. Recorded services provided on account for the period June 1–12, $5,100.
6. Paid part-time receptionist for two weeks’ salary, $1,100.
7. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500.
8. Paid cash for supplies, $750.
9. Recorded services provided on account for the period June 13–20, $3,100.
10. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150.
11. Received cash from clients on account, $6,900.
12. Paid part-time receptionist for two weeks’ salary, $1,100.
13. Paid telephone bill for June, $150.
14. Paid electricity bill for June, $400.
15. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500.
16. Recorded services provided on account for the remainder of June, $1,000.
17. Emily withdrew $5,000 for personal use.

 

Instructions

1. Journalize each transaction in a two-column journal, referring to the following chartof accounts in selecting the accounts to be debited and credited. (Do not insert theaccount numbers in the journal at this

For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions during December:1st Aaron Jones invested the following assets in the business:cash, $50,000; supplies, $10,000; and office equipment, $30,000.Mr. Jones received stock in an amount equal to his investment inthe corporation. 2nd Paid $9,000 for rent for December 20X1 throughFebruary 28, 20X2. 3rd Paid $12,000 for a one year premium onproperty and casualty insurance. The policy covers the periodDecember 1, 20X1 to November 30, 20X2. 4th Received $16,000 cashfrom a client as an advance payment for services to be performed inthe future. 5th Purchased additional office equipment on accountfrom Payne Company for $10,000. 10th Paid $7,500 for a newspaperadvertisement that ran in today’s paper. 11th Paid Payne Company$3,000 for part of the debt incurred on December 5. 12th Billedclients for services performed on account, $5,800. 17th Receivedcash payment from client for services performed on this date,$14,000. 18th Paid $6,000 for supplies. 20th Billed clients forservices performed on account, $15,000. 24th Received cash paymentfrom client for services performed on this date, $2,000. 25thReceived cash from clients as payment on account, $3,000. 30th Paid$750 for utilities for December. 31st Paid cash dividend of$5,000

Journalize each of the above transactions.

Post theses Journal entries tothe ledger.Prepare anunadjusted trial balance as of December 31,20X1.Journalize and post the adjustingentries using the following information:

a. Insurance expired during December is $1,000 Supplies on hand on December 31 are valued at$4,500. Depreciation ofoffice equipment for December is $1,000. Rent expired during December is $3,000.Determined that the company hadperformed $4,000 of the services for which it was paid in advanceon December 4th. f. Employeewages were left unpaid in the amount of $1,700 for the month ofDecember. The employees will be paid the first week inJanuary. Services wereperformed for a client on December 31 in the amount of $2,100. Theclient did not pay, nor has the client been billed. (hint: thistransaction has not yet been journalized.) Prepare an adjusted trial balance.Using the adjusted trial balance,prepare an income statement, a statement of retained

earnings, and a balance sheet. Journalize and post the closing entries.Prepare a post-closing trialbalance.

Ineed the correct journal entries for these transactions (postrefereance not needed) and what the trial balance should be equalafter. My check figure says $76,630 for the trial.THANKSS!

May 3: Received cash fromclients as an advance payment for services to be provided andrecorded it as unearned fees, $3,000.

May5: Received cash from clients on account, $2,100.

May9: Paid cash for a newspaper advertisement, $300.

May13: Paid Office Station Co. for part of the debt incurred onApril 5, $400.

May15: Recorded services provided on account for the period May1-15, $7,350.

May16: Paid part-time receptionist for two weeks' salaryincluding the amount owed on April 30, $750.

May17: Recorded cash from cash clients for fees earned duringthe period May 1-16, $6,150.

May20: Purchased supplies on account, $600.

May21: Recorded services provided on account for the period May16-20, $6,175.

May25: Recorded cash from cash clients for fees earned for theperiod May 17-23, $3,125.

May27: Received cash from clients on account, $11,250.

May28: Paid part-time receptionist for two weeks' salary, $750.

May30: Paid telephone bill for May, $120

May31: Paid electricity bill for May, $290.

May31: Recorded cash from cash clients for fees earned for theperiod May 26-31, $2,800.

May31: Recorded services provided on account for the remainderof May, $1,900

May31: Paid dividends of $15,000.

What is the unadjusted trial balance of Kelly Consulting?

The journal entries:

May 3: Received cash from clients as an advance payment for services to be provided and recorded as unearned fees, $4,500.
Debit: Cash  $4500
Credit: Unearned Fees $4500
_____
May 5: Received cash from clients on account, $2,450.
Debit: Cash $2,450
Credit: Accounts Receivable $2,450
_____
May 9: Paid cash for a newspaper advertisement, $225.
Debit: Miscellaneous Expense $225
Credit: Cash  $225
_____
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
Debit: Accounts Payable  $640
Credit: Cash $640
_____
May 15: Recorded services provided on account for the period May 1–15, $9,180.
Debit: Accounts Receivable $9,180
Credit: Fees Earned $9,180
_____
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
Debit: Salaries Expense $630
Debit: Salary Payable $120
Credit: Cash $750
_____
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
Debit: Cash $8,360
Credit: Fees Earned $8,360
_____
May 20: Purchased supplies on account, $735.
Debit: Supplies  $735
Credit: Accounts Payable $735
_____
May 21: Recorded services provided on account for the period May 16–20, $4,820.
Debit: Accounts Receivable $4,820
Credit: Fees Earned $4,820
_____
May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.
Debit: Cash $7,900
Credit: Fees Earned $7,900
_____
May 27: Received cash from clients on account, $9,520.
Debit: Cash $9,520
Credit: Accounts Receivable $9,520
_____
May 28: Paid part-time receptionist for two weeks' salary, $750.
Debit: Salaries Expense $750
Credit: Cash $750
_____
May 30: Paid telephone bill for May, $260.
Debit: Miscellaneous Expense $260
Credit: Cash $260
_____
May 31: Paid electricity bill for May, $810.
Debit: Miscellaneous Expense  $810
Credit: Cash  $810
_____
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
Debit: Cash $3,300
Credit: Fees Earned $3,300
_____
May 31: Recorded services provided on account for the remainder of May, $2,650.
Debit: Accounts Receivable $2,650
Credit: Fees Earned $2,650
_____
May 31: Kelly withdrew $10,500 for personal use.
Debit: Kelly Pitney, Drawing $10,500
Credit: Cash $10,500