Kelly Consulting

Kelly Pitney began her consulting business, Kelly consulting P.C., on May 31, 2008. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated on pages 163-173. During May, Kelly Consulting entered into 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.
1. The chart of accounts for Kelly Consulting is shown on page 164, and the post-closing trial balance as of May 31, 2008, 2012, is shown on page 171. 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, 2008, and place a check mark (() in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal and using Kelly Consultant’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 trial 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 ………………………
5 Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries Record the adjusting entries on Page 7 of the journal.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a retained earnings statements, and a balance sheet.
9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal (Income Summary is account =3/1 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.