Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2010. The accounting cycle for Kelly Consulting for April , including financial statements was illistrated on page 157-168. During May, Kelly consulting entered the following transactions:
May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $3,000
5. Received cash from clients on account, $2100
9. Paid cash for a newspaper advertisement, $300.
13. Paid office station company for part of the debt incurred on april 5, $400.
15. Recorded services provided on account for the period May 1-15, $7350
16. paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750.

Record the following transaction
17. Recorded cash from cash clients for fees earned during the period May 1-16, $6150
20. Purchased supplies on account, $600
21. Recorded services provided on account for the period May 16-20, $6175
25. Recorded cash from cash clients for fees earned for the period May 17-23, $3125
27. Received cash from clients on account, $11,250
28. Paid part-time receptionist for two weeks salary, $750.
30. Paid telephone bill for May, $120.
31. Paid electricity bill for May $290.
31. Recorded cash from cash clients for fees earned for the period May 26-31, $2,800
31. Recorded services provided on account for the remainder of May, $1,900
31. Kelly withdrew $ 15,000 personal use.
Instructions:
1. The chart of accounts for Kelly Consulting is shown on page 158, and the post-closing trial balance as of April 30, 2010 is shown on page 166. For each account in the post-closing trial balance, enter the balance in the appropriate balance column of a four column account. Date the balances May 1, 2010, and place a check mark in the posting reference column. Journalize each of the May transactions in a two column journal using Kelly Consulting’s chart of accounts. (do not insert the account numbers in the journal at this time.)
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trail balance
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts 5 and 6.
a. Insurance expired during May is $300.
b. Supplies on hand on May 31 are $750
c. Depreciation of office equipment for May is $330.
d. Accrued receptionist salary on May 31 is $300.
e. Rent expired during May is $1,600.
f. Unearned fees on May 31 are $1,500
5. Enter the unadjusted trial balance on an end-of-period spreadsheet (worksheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7.Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
9. Prepare and post the closing entries. (Income summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance