Search

Step 1 Analyze and Journalize the transactions for April.

Apr. 1 The following assets were received from Kelly Pitney in exchange for common stock: cash,
$13,100; accounts receivable, $3,000; supplies, $1,400; and office equipment, $12,500. There were
no liabilities received.

Apr. 1 Paid three months’ rent on a lease rental contract, $4,800.

Apr. 2 Paid the premiums on property and casualty insurance policies, $1,800.

Apr. 4 Received cash from clients as an advance payment for services to be provided and
recorded it as unearned fees, $5,000.

Apr. 5 Purchased additional office equipment on account from Office Station Co., $2,000.

Apr. 6 Received cash from clients on account, $1,800.

Apr. 10 Paid cash for a newspaper advertisement, $120.

Apr. 12 Paid Office Station Co. for part of the debt incurred on April 5, $1,200.

Apr. 12 Recorded services provided on account for the period April 1 – 12, $4,200.

Apr. 14 Paid part-time receptionist for two weeks’ salary, $750.

Apr. 17 Recorded cash from cash clients for fees earned during the period April 1 – 16,
$6,250.

Apr. 18 Paid cash for supplies, $800.

Apr. 20 Recorded services provided on account for the period April; 13 – 20, $2,100.

Apr. 24 Recorded cash from cash clients for fees earned for the period April 17 – 24, $3,850.

Apr. 26. Received cash from clients on account, $5,600.

Apr. 27 Paid part-time receptionist for two weeks’ salary, $750.

Apr. 29 Paid telephone bill for April, $130.

Apr. 30 Paid electricity bill for April, $200.

Apr. 30 Recorded cash from cash clients for fees earned for the period April 25 – 30, $3,050.

Apr. 30 Recorded services provided on account for the remainder of April, $1,500.

Apr 30 Paid dividends, $6,000.

Step 2 Post transactions to the ledger.

Step 3 Prepare an unadjusted trial balance.

Step 4 Assemble and analyze adjustment data.

a. Insurance expired during April is $300.

b. Supplies on hand on April 30 are $1,350.

c. Depreciation on office equipment for April is $330.

d. Accrued receptionist salary on April 30 is $120.

e. Rent expired during April is $1,600.

f. Unearned fees on April 30 are $2,500.

Step 5 Prepare an optional end-of-period spreadsheet.

Step 6 Journalize and post the adjusting entries.

Step 7 Prepare an adjusted trial balance.

Step 8 Prepare the !nancial statements.

Step 9 Journalized and post the closing entries.

Step 10 Prepare a post-closing trial balance.

Kelly Consulting

End-of-Period Spreadsheet

For the Month Ended April 30, 2016

Unadjusted Adjusted

Income Balance
Trial Balance Adjustments Trial Balance
Statement Sheet

DR CR DR CR DR CR DR CR DR CR

Cash

Accounts
Receivable

Supplies

Prepaid Rent

Prepaid Insurance

Office Equipment

Accumulated
Depreciation

Accounts Payable

Salaries Payable

Unearned Fees

Common Stock

Dividends

Fees Earned

Salary Expense

Rent Expense

Supplies Expense

Depreciation
Expense

Insurance
Expense

Miscellaneous
Expense

There are 2 steps to solve this one.

Expert-verified Share

1st step All steps Answer only

Step 1

The question asked was to analyze and journalize the transactions for April. This involves
examining each "nancial event that occurred during April and recording them in the
company's accounting records using journal entries.

Explanation:

Initially, summarize the business activities for April and note how they impact the
company's accounts.

Step 2

Apr. 1 : Assets received from Kelly Pitney for common stock:

Debit: Cash $13, 100
Debit: Accounts Receivable $3, 000
Debit: Supplies $1, 400
Debit: Office Equipment$12, 500
Credit: Common Stock (for the total of assets received)
Apr. 1 : Paid three months’ rent on a simple rental contract:

Date Account Dr Cr
Prepaid Rent $4,800
Cash $4,800

Apr. 2 :Paid premiums on property and casualty insurance policies:

Date Account Dr Cr
Prepaid Insurance $1,800
Cash $1,800

Apr. 4 : Received cash from customers as an advance payment for services to be provided:

Date Account Dr Cr
Cash $5,000
Unearned Fees $5,000

Apr. 5 : purchased additional office equipment on account from Officе Station Co.

Date Account Dr Cr
Office Equipment $2,000
Accounts Payable $2,000

Apr. 6:Received cash from clients on account:

Date Account Dr Cr
Cash $1,800
Accounts Receivable $1,800

Apr. 10 : Paid cash for a newspapеr advertisement:

Date Account Dr Cr
Advertising Expense $120
Cash $120

Apr. 12 : Paid Officе Station Co. for part of the debt incurred on April 5:

Date Account Dr Cr
Accounts Payable $1,200
Cash $1,200

Apr. 12 : Recorded services provided on account for April 1–12:

Date Account Dr Cr
Accounts Receivable $4,200
Service Revenue $4,200

Apr. 14 : Paid part-timе rеcеptionist for two weeks’ salary:

Date Account Dr Cr
Salary Expense $750
Cash $750

Apr. 17 :Recorded cash from cash customers for fees earned during April 1–16:

Date Account Dr Cr
Cash $6,250
Service Revenue $6,250

Apr. 18 : Paid cash for supplies:

Date Account Dr Cr
Supplies $800
Cash $800

Apr. 20 :Recorded services provided on account for April 13–20:

Date Account Dr Cr
Accounts Receivable $2,100
Service Revenue $2,100

Apr. 24 : Recorded cash from cash customers for fees earned during April 17–24:

Date Account Dr Cr
Cash $3,850
Service Revenue $3,850

Apr. 26 : Received cash from clients on account:

Date Account Dr Cr
Cash $5,600
Accounts Receivable $5,600

Apr. 27 : Paid part-timе rеcеptionist for two weeks’ salary:

Date Account Dr Cr
Salary Expense $750
Cash $750

Apr. 29 : Paid telephone bill for April:

Date Account Dr Cr
Telephone Expense $130
Cash $130

Apr. 30 :Paid electricity bill for April:

Date Account Dr Cr
Electricity Expense $200
Cash $200

Apr. 30 :Recorded cash from cash customers for fees earned during April 25–30:

Date Account Dr Cr
Cash $3,050
Service Revenue $3,050

Apr. 30 : Recorded services provided on account for the remainder of April:

Date Account Dr Cr
Accounts Receivable $1,500
Service Revenue $1,500

Apr. 30 :Paid dividends:

Date Account Dr Cr
Dividends $6,000
Cash $6,000

Explanation:

These journal entries re#ect the transactions for April.

Answer

Total transactions for April:

Total Dеbits = $56, 670

Total Crеdits = $56, 670

Was this solution helpful?

What would you like to do next?

Send my question to an expert

Academic Integrity / Feedback / Help Center / Manage Subscription

Cookie Notice Your Privacy Choices Do Not Sell My Info General Policies Privacy Policy

Honor Code IP Rights

© 2003-2024 Chegg Inc. All rights reserved.