accounting 2 quiz
Analyze and Record Transactions in a Journal
Post Transactions to the Ledger
Prepare an Unadjusted Trial Balance
Assemble and Analyze Adjustment Data
Journalize and Post Adjusting Entries
Prepare an Adjusted Trial Balance
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. |
| Paid three (3) months’ rent on a lease rental contract, $4,800 | |
| 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 |
| Purchased additional office equipment on account from Office Station co, $2,000 | |
| 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 | Cash | 11 | |||
| Accounts Receivable | 12 | ||||
| Supplies | 14 | ||||
| Office Equipment | 18 | ||||
| Kelly Pitney, Capital | 31 | ||||
| 10 | |||||
| 12 | |||||
| 12 | Accounts Receivable | 12 | |||
| Fees Earned | 41 | ||||
| 14 | |||||
| 17 | |||||
| 18 | |||||
| 20 | |||||
| 24 | |||||
| 26 | |||||
| 27 | |||||
| 29 | Miscellaneous Expense | 59 | |||
| Cash | 11 | ||||
| 30 | |||||
| 30 | |||||
| 30 | |||||
| 30 | Kelly Pitney, Drawing | ||||
| Cash | |||||
1. Insurance expired during April is $300
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 | |||||||||
| (Expired Insurance) | |||||||||
| Kelly Consulting Adjusted Trial Balance 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 | ||
| 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: | ||
| 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 | ||
| Less withdrawals | ||
| Increase in owner’s equity | ||
| Kelly Pitney, capital April 30, 2012 | ||
| Kelly Consulting Balance Sheet April 30, 2012 |
