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Part 1
Comprehensive Problem 1:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Kelly Pitney began her consulting business, Kelly Consulting, P.C., on April 1, 2014. The chart of accounts for Kelly Consulting is shown below:
[img height="194" src="http://sjc.cengagenow.com/ilrn/books/wrfm12h/images/bonus/wrfm12h_cp1_c1p1b1.gif" width="388">
[img height="410" src="http://sjc.cengagenow.com/ilrn/books/wrfm12h/images/bonus/wrfm12h_cp1_c1p1b.gif" width="844">
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.
May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
Description Post. Ref. Debit Credit
Cash 4500
Unearned Fees 4500
May 5: Received cash from clients on account, $2,450.
Description Post. Ref. Debit Credit
Cash 2450
Accounts Receivable 2450
May 9: Paid cash for a newspaper advertisement, $225.
Description Post. Ref. Debit Credit
Miscellaneous Expense 225
Cash 225
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
Description Post. Ref. Debit Credit
Accounts Payable 640
Cash 640
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