ANSWER ALL QUESTIONS IN FIELD READ CAREFULLY PLEASE LABEL EACH QU.docx

ANSWER ALL QUESTIONS IN FIELD: READ CAREFULLY
PLEASE LABEL EACH QUESTION
Question 1
Classifying Accounts
Balances for each of the following accounts appear in an
adjusted trial balance. Identify each as an asset, liability,
revenue, or expense.
1. Accounts Receivable
2. Equipment
3. Fees Earned
4. Insurance Expense
5. Land
6. Prepaid Rent
7. Rent Revenue
8. Salary Expense
9. Salary Payable
10. Supplies
11. Unearned Rent
12. Wages Payable
Question 2

Financial Statements from the End-of-Period Spreadsheet
Elliptical Consulting is a consulting firm owned and operated
by Jayson Neese. The following end-of-period spreadsheet was
prepared for the year ended June 30, 2019:
Elliptical Consulting
End-of-Period Spreadsheet
For the Year Ended June 30, 2019
Unadjusted
Adjusted
Trial Balance
Adjustments
Trial Balance
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.

Cash
27,000
27,000
Accounts Receivable
53,500
53,500
Supplies
3,000
(a)
2,100
900
Office Equipment
30,500

30,500
Accumulated Depreciation
4,500
(b)
1,500
6,000
Accounts Payable
3,300
3,300
Salaries Payable
(c)
375
375
Jayson Neese, Capital
82,200

82,200
Jayson Neese, Drawing
2,000
2,000
Fees Earned
60,000
60,000
Salary Expense
32,000
(c)
375
32,375
Supplies Expense
(a)
2,100

2,100
Depreciation Expense
(b)
1,500
1,500
Miscellaneous Expense
2,000
2,000
150,000
150,000
3,975
3,975
151,875
151,875
Based on the preceding spreadsheet, prepare an income
statement for Elliptical Consulting.
Income Statement

$
Expenses:
$
Total expenses
$
Based on the preceding spreadsheet, prepare a statement of
owner's equity for Elliptical Consulting.
Statement of Owner's Equity
$
$

$
Based on the preceding spreadsheet, prepare a balance sheet for
Elliptical Consulting.
Balance Sheet
June 30, 2019
Assets
Current assets:
$
Total current assets
$
Property, plant, and equipment:
$

Total property, plant, and equipment
Total assets
$
Liabilities
Current liabilities:
$
Total liabilities
$
Owner's Equity
Total liabilities and owner's equity
$
Question 3:
Income Statement; Net Loss
The following revenue and expense account balances were taken
from the ledger of Wholistic Health Services Co. after the
accounts had been adjusted on February 28, 2019, the end of

the fiscal year:
$7,500
Insurance Expense
3,000
8,150
Rent Expense
54,000
Service Revenue
448,400
Supplies Expense
2,750
Utilities Expense
33,900
Wages Expense
360,000
Prepare an income statement. Use a minus sign to indicate a net
loss.
Wholistic Health Services Co.
Income Statement
For the Year Ended February 28, 2019
$
Expenses:
$

Total expenses
Question 4:
Apex Systems Co. offers its services to residents in the Seattle
area. Selected accounts from the ledger of Apex Systems Co. for
the fiscal yearended December 31, 2019, are as follows:
Bart Nesbit, Capital
Bart Nesbit, Drawing
Dec. 31
90,000
Jan. 1 (2019)
1,375,000
Mar. 31

22,500
Dec. 31
90,000
Dec. 31
355,000
June 30
22,500
Sept. 30
22,500
Dec. 31
22,500
Prepare a statement of owner's equity for the year.
Apex Systems Co.
For the Year Ended December 31, 2019

$
$
$
Question 5:
Balance Sheet Classification
At the balance sheet date, a business owes a mortgage note
payable of $375,000, the terms of which provide for monthly
payments of $1,250.
How should the liability be classified on the balance sheet?
Current liability: $
Long-term liability: $
Question 6:
Balance Sheet
Optimum Weight Loss Co. offers personal weight reduction
consulting services to individuals. After all the accounts have
been closed on November 30, 2019, the end of the fiscal year,
the balances of selected accounts from the ledger of Optimum
Weight Loss Co. are as follows:
Accounts Payable
$37,700
Accounts Receivable
116,750
Accumulated Depreciation - Equipment

186,400
Cash
?
Equipment
474,150
Land
300,000
Prepaid Insurance
7,200
Prepaid Rent
21,000
Salaries Payable
9,000
Cheryl Viers, Capital
710,300
Supplies
4,800
Unearned Fees
18,000
Prepare a classified balance sheet that includes the correct
balance for Cash.
Optimum Weight Loss Co.
Balance Sheet
November 30, 2019
Assets
Current assets:
$

Total current assets
$
Property, plant, and equipment:
$
$
Total property, plant, and equipment

Total assets
$
Liabilities
Current liabilities:
$
Total liabilities
$
Owner's Equity
Total liabilities and owner's equity
$

Question 7:
Closing Entries
Prior to closing, total revenues were $12,840,000 and total
expenses were $9,975,000.
During the year, the owner made no additional investments and
withdrew $630,000. After the closing entries, how much did the
owner’s capital account change?
$
Question 8:
Post-Closing Trial Balance
An accountant prepared the following post-closing trial balance:
La Casa Services Co.
March 31, 2019
Debit Balances
Credit Balances
Cash
46,540
Accounts Receivable
122,260
Supplies
4,000

Equipment
127,200
Accumulated Depreciation - Equipment
33,600
Accounts Payable
52,100
Salaries Payable
6,400
Unearned Rent
9,000
Sonya Flynn, Capital
198,900
462,400
137,600

Prepare a corrected post-closing trial balance. Assume that all
accounts have normal balances and that the amounts shown are
correct. If an amount box does not require an entry, leave it
blank.
La Casa Services Co.
March 31, 2019
Debit Balances
Credit Balances
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Salaries Payable
Unearned Rent
Sonya Flynn, Capital

Question 9:
Working Capital and Current Ratio
The following data (in thousands) were taken from recent
financial statements of Under Armour, Inc.:
December 31
Year 2
Year 1
Current assets
$1,498,763
$1,549,399
Current liabilities
478,810
421,627
a. Compute the working capital and the current ratio as of
December 31, Year 2 and Year 1. Enter working capital amounts
in thousands of dollars. Round "current ratio" answers to two
decimal places.
December 31
Year 2
Year 1
Working capital
$
$

Current ratio
b. What conclusions concerning the companys ability to meet its
financial obligations can you draw from part (a)? Under
Armour's working capital by $ during Year 2. The current
ratio in Year 2. Because year 2's current ratio indicates
a liquidity position, the short-term creditors concerned about
receiving payment from Under Armour.
Question 10:
Appendix: Adjustment Data on an End-of-Period Spreadsheet
Alert Security Services Co. offers security services to business
clients. The trial balance for Alert Security Services Co. has
been prepared on the following end-of-period spreadsheet for
the year ended October 31, 2019. In addition, the data for year-
end adjustments are as follows:
a. Fees earned, but not yet billed, $13.
b. Supplies on hand, $4.
c. Insurance premiums expired, $10.
d. Depreciation expense, $3.
e. Wages accrued, but not paid, $1.
Enter the adjustment data, and place the balances in the
Adjusted Trial Balance columns. If a box does not require an
entry, leave it blank.
Alert Security Services Co.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2019
Account Title
Unadjusted Trial Balance Debit
Unadjusted Trial Balance Credit
Adjustments Debit
Adjustments Credit
Adjusted Trial Balance Debit
Adjusted Trial Balance Credit

Cash
12
Accounts Receivable
90
Supplies
8
Prepaid Insurance
12
Land
190
Equipment

50
Accum. Depr.-Equipment
4
Accounts Payable
36
Wages Payable
0
Brenda Schultz, Capital
260
Brenda Schultz, Drawing
8

Fees Earned
200
Wages Expense
110
Rent Expense
12
Insurance Expense
0
Utilities Expense
6

Supplies Expense
0
0
2
Totals
500
500
Question 11:
Identify Journals
Assuming the use of a two-column (all-purpose) general

journal, a revenue journal, and a cash receipts journal, indicate
the journal in which each of the following transactions should
be recorded:?
from the list.
a. Receipt of cash refund from overpayment of taxes.
b. Adjustment to record accrued salaries at the end of the year.
c. Providing services on account.
d. Investment of additional cash in the business by the owner.
e. Receipt of cash on account from a customer.
f. Receipt of cash for rent.
g. Receipt of cash from sale of office equipment.
h. Sale of used office equipment on account, at cost, to a
neighboring business.
i. Closing of drawing account at the end of the year.
j. Providing services for cash.
Question 12:
Prepare Journal Entries in a Revenue Journal
Horizon Consulting Company had the following transactions
during the month of October:
Oct. 2.
Issued Invoice No. 321 to Pryor Corp. for services rendered on
account, $595.
Oct. 3.

Issued Invoice No. 322 to Armor Inc. for services rendered on
account, $310.
Oct. 14.
Issued Invoice No. 323 to Pryor Corp. for services rendered on
account, $205.
Oct. 24.
Issued Invoice No. 324 to Rose Co. for services rendered on
account, $850.
Oct. 29.
Collected Invoice No. 321 from Pryor Corp.
a. Record the October revenue transactions for Horizon
Consulting Company in the following revenue journal format:
REVENUE JOURNAL
DATE
Invoice No.
Account Debited
Post. Ref.
Accounts Rec. Dr.
Fees Earned Cr.
Oct. 2
Oct. 3
Oct. 14

Oct. 24
Oct. 31
b. What is the total amount posted to the accounts receivable
and fees earned accounts from the revenue journal for October?
Accounts receivable
$
Fees earned
$
c. What is the October 31 balance of the Pryor Corp. customer
account assuming a zero balance on October 1?
$
Question 13:
Accounts Receivable Subsidiary Ledger
The revenue journal and cash receipts journal for Polaris
Productions Inc. follow. The accounts receivable control
account has a January 1, 20Y4, balance of $3,790 consisting of
an amount due from Clear Pointe Studios Inc.
REVENUE JOURNAL
Page 16
Date
Invoice No.
Account Debited

Post Ref.
Accounts Rec. Dr.
Fees Earned Cr.
20Y4
Jan. 6
1
Echo Broadcasting Co.
✔
2,300
Jan. 14
2
Gold Coast Media Inc.
✔
5,100
Jan. 22
3
✔
2,980
Jan. 25
4
Clear Pointe Studios Inc.
✔
1,650
Jan. 29
5

Amber Communications Inc.
✔
3,650
Jan. 31
15,680
(12)(41)
CASH RECEIPTS JOURNAL
Page 36
Date
Account Credited
Post Ref.
Fees Earned Cr.
Accounts Rec. Cr.
Cash Dr.
20Y4

Jan. 6
✔
—
3,790
3,790
Jan. 11
Fees Earned
3,200
3,200
Jan. 18
✔
—
2,300
2,300
Jan. 28
✔
—
5,100
5,100
Jan. 31

3,200
11,190
14,390
(41)
(12)
(11)
Prepare a listing of the accounts receivable customer balances
and verify that the total agrees with the ending balance of the
accounts receivable controlling account. If an amount is zero,
enter "0".
Polaris Productions Inc.
Accounts Receivable Customer Balances
January 31, 20Y4
Amber Communications Inc.
$
Total accounts receivable
$
Polaris Productions Inc.
Accounts Receivable
Controlling
Balance, January 1, 20Y4

$
Total debits (from revenue journal)
Total credits (from cash receipts journal)
Balance, January 31, 20Y4
$
Question 14:
Show Me How
Calculator
Revenue and Cash Receipts Journals
Transactions related to revenue and cash receipts completed by
Sycamore Inc. during the month of March 20Y8 are as follows:
Mar. 2.
Issued Invoice No. 512 to Santorini Co., $905.
Mar. 4.
Received cash from CMI Inc., on account, for $205.
Mar. 8.
Issued Invoice No. 513 to Gabriel Co., $220.
Mar. 12.
Issued Invoice No. 514 to Yarnell Inc., $845.
Mar. 19.
Received cash from Yarnell Inc., on account, $555.
Mar. 20.
Issued Invoice No. 515 to Electronic Central Inc., $195.
Mar. 28.
Received cash from Marshall Inc. for services provided, $160.
Mar. 29.
Received cash from Santorini Co. for Invoice No. 512 of March
2.
Mar. 31.
Received cash from McCleary Co. for services provided, $85.
Prepare a single-column revenue journal and a cash receipts
journal to record these transactions. Enter the transactions in

chronological order.
REVENUE JOURNAL
DATE
Invoice No.
Account Debited
Post. Ref.
Accounts Rec. Dr.
Fees Earned Cr.
20Y8
Add DAtes
List accounts
✔
✔
✔
✔

Total
If an amount box does not require an entry, leave it blank.
CASH RECEIPTS JOURNAL
PAGE 12
DATE
Account Credited
Post. Ref.
Fees Earned Cr.
Accounts Rec. Cr.
Cash Dr.
20Y8
Add dates
List accounts
✔
✔
✔

Total
Question 15:
Identify transactions in accounts payable subsidiary ledger
The debits and credits from three related transactions are
presented in the following creditor's account taken from the
accounts payable ledger:
NAME
Apex Performance Co.
ADDRESS
101 W. Stratford Ave.
Date
Item
Post. Ref.
Debit
Credit
Balance
20Y7

June 6
P49
12,000
12,000
June 14
J12
150
11,850
June 16
CP23
11,850
—
Describe each transaction (Purchase on account, paid on, sold
on, received on, corrected error or received allowance , and
identify the source(purchase journal, cash receipts journal, cash
payemnts journal, revenue journal, general journal) of each
posting.
Date
Describe Transaction
Transaction Source
June 6
June 14
June 16

Question 16:
Prepare Journal Entries in a Purchases Journal
Guardian Services Inc. had the following transactions during the
month of April:
Apr. 4.
Purchased office supplies from Officemate Inc. on account,
$415.
Apr. 9.
Purchased office equipment on account from Tek Village Inc.,
$2,460.
Apr. 16.
Purchased office supplies from Officemate Inc. on account,
$185.
Apr. 19.
Purchased office supplies from Paper-to-Go Inc. on account,
$195.
Apr. 27.
Paid invoice on April 4 purchase from Officemate Inc.
a. Prepare a purchases journal to record the April purchase
transactions for Guardian Services Inc. If an amount box does
not require an entry, leave it blank.
If no entry is required in "Other Accounts Dr." then select "No
entry required".
PURCHASES JOURNAL
DATE
Account Credited
Post. Ref.
Accounts Payable Cr.
Office Supplies Dr.
Other Accounts Dr.
Post. Ref.
Amount
Apr. 4

Apr. 9
Apr. 16
Apr. 19
Apr. 30
Total

b. What is the total amount posted to the accounts payable and
office supplies accounts from the purchases journal for April?
Credit to accounts payable
$
Debit to office supplies
$
c. What is the April 30 balance of the Officemate Inc. creditor
account assuming a zero balance on April 1?
$
Question 17:
Segment Revenue Horizontal Analysis
Starbucks Corporation reported the following geographical
segment revenues for a recent and a prior fiscal year:
Recent Year
(in millions, rounded)
Prior Year
(in millions, rounded)
Americas
$13,293
$11,980
EMEA*
1,217
1,295
China/Asia Pacific
2,396
1,130
Channel Development**

1,731
1,546
Other
526
497
Total
$19,163
$16,448
*Europe, Middle East, and Africa
**Sells packaged coffee and teas globally
a. Prepare a horizontal analysis of the segment data using the
prior year as the base year. Round all percents to one decimal
place. Enter all amounts in millions. If required, use minus sign
to indicate the decreases values.
Starbucks Corporation
Horizontal Analysis
Recent Year (in millions)
Prior Year (in millions)
Increase (Decrease)
Amount
Increase (Decrease)
Percent
Americas
$13,293
$11,980
$
%
EMEA

1,217
1,295
%
China/Asia Pacific
2,396
1,130
%
Channel Development
1,731
1,546
%
Other
526
497
%
Total revenues
$19,163
$16,448
$
%
b. Prepare a vertical analysis of the segment data. Round all
percents to one decimal place.
Starbucks Corporation
Vertical Analysis
Recent Year Amount
Recent Year Percent
Prior Year Amount
Prior Year Percent
Americas
$13,293

%
$11,980
%
EMEA
1,217
%
1,295
%
China/Asia Pacific
2,396
%
1,130
%
Channel Development
1,731
%
1,546
%
Other
526
%
497
%
Total revenues
$19,163
%
$16,448
%
c. Based on the percentages in the vertical analysis, which of
Starbuck's operations grew more? Americas, EMEA,
CHINA/ASIA Pacific? Choose one
Question 18
Segment Revenue Vertical Analysis
Twenty-First Century Fox, Inc. is one of the world’s largest
entertainment companies that includes Twentieth Century Fox
films, Fox Broadcasting, Fox News, the FX, and various

satellite properties. The company provided revenue disclosures
by its major product segments in the notes to its financial
statements as follows:
a. Using the revenue disclosures by major product segment
listed below, provide a vertical analysis of the product segment
revenues. Round all percentages to one decimal place.
Major Product Segments
For a Recent Year
(in millions)
Percent (%)
Cable Network Programming
$13,773
%
Television
4,895
%
Filmed Entertainment
9,525
%
Direct Broadcast Satellite Television
2,112
%
Total revenues
$30,305

100.0%
Question 20
Beacon Signals Company maintains and repairs warning lights,
such as those found on radio towers and lighthouses. Beacon
Signals Company prepared the following end-ofperiod
spreadsheet at December 31, 2019, fiscal year:
Beacon Signals Company
For the Year Ended December 31, 2019
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
13,000.00
13,000.00
Accounts Receivable
40,500.00
(a) 12,500.00

53,000.00
Prepaid Insurance
4,200.00
(b) 3,000.00
1,200.00
Supplies
3,000.00
(c) 2,250.00
750.00
Land
98,000.00
98,000.00
Building
500,000.00
500,000.00
Accumulated Depreciation-Building
255,300.00
(d) 9,000.00

264,300.00
Equipment
121,900.00
121,900.00
Accumulated Depreciation-Equipment
100,100.00
(e) 4,500.00
104,600.00
Accounts Payable
15,700.00
15,700.00
Salaries and Wages Payable
(f) 4,900.00
4,900.00
Unearned Rent
2,100.00
(g) 1,300.00

800.00
Sarah Colin, Capital
238,100.00
238,100.00
Sarah Colin, Drawing
10,000.00
10,000.00
Fees Earned
388,700.00
(a) 12,500.00
401,200.00
Rent Revenue
(g) 1,300.00
1,300.00
Salaries and Wages Expense
163,100.00
(f) 4,900.00
168,000.00

Advertising Expense
21,700.00
21,700.00
Utilities Expense
11,400.00
11,400.00
Depreciation Expense-Building
(d) 9,000.00
9,000.00
Repairs Expense
8,850.00
8,850.00
Depreciation Expense-Equipment
(e) 4,500.00
4,500.00
Insurance Expense

(b) 3,000.00
3,000.00
Supplies Expense
(c) 2,250.00
2,250.00
4,350.00
4,350.00
1,000,000.00
1,000,000.00
37,450.00
37,450.00
1,030,900.00
1,030,900.00
Required: DO ALL 1-5 with correct labels
1.
Prepare an income statement for the year ended December 31. If
a net loss has been incurred, enter that amount as a negative
number using a minus sign. Be sure to complete the statement
heading. Use the list of Labels and Amount Descriptions for the
correct wording of text items other than account names. You
will not need to enter colons (:) on the income statement.

2.
Prepare a statement of owner’s equity for the year ended
December 31. No additional investments were made during the
year. For those boxes in which you must enter subtracted or
negative numbers use a minus sign. Be sure to complete the
statement heading. Use the list of Labels and Amount
Descriptions for the correct wording of text items.
3.
Prepare a balance sheet as of December 31. Fixed assets must be
entered in order according to account number. Be sure to
complete the statement heading. Use the list of Labels and
Amount Descriptions for the correct wording of text items other
than account names. You will not need to enter colons (:) or the
word "Less" on the balance sheet; they will automatically insert
where necessary.
4.
Based upon the end-of-period spreadsheet, journalize the
closing entries. Explanations should be omitted. If you are
unsure of account titles, see the chart of accounts.
5.
Prepare a post-closing trial balance.
Question 21
Finders Investigative Services is an investigative services firm
that is owned and operated by Stacy Tanner. On June 30, 2019,
the end of the fiscal year, the accountant for Finders

Investigative Services prepared an end-of-period spreadsheet, a
part of which follows:
Finders Investigative Services
~
Adjusted Trial Balance
Account Title
~
Dr.
Cr.
~
Cash
~
28,000
Accounts Receivable
~
69,600
Supplies
~
4,600
Prepaid Insurance
~
2,500
Building
~
439,500

Accumulated Depreciation-Building
~
44,200
Accounts Payable
~
11,700
Salaries Payable
~
3,000
Unearned Rent
~
2,000
Stacy Tanner, Capital
~
373,800
Stacy Tanner, Drawing
~
12,000
Service Fees
~
718,000
Rent Revenue
~
12,000
Salaries Expense
~
522,100

Rent Expense
~
48,000
Supplies Expense
~
10,800
Depreciation Expense-Building
~
8,750
Utilities Expense
~
7,150
Repairs Expense
~
3,000
Insurance Expense
~
2,500
~
6,200
~
1,164,700
1,164,700
Required: DO ALL 1-3 AND LABEL ALL
1.
Prepare an income statement, a statement of owner’s equity (no

additional investments were made during the year), and a
balance sheet. *
2.
Journalize the entries that were required to close the accounts at
June 30.
3.
If Stacy Tanner, Capital has instead decreased $30,000 after the
closing entries were posted, and the withdrawals remained the
same, what would have been the amount of net income or net
loss?
* Be sure to read the instructions for each financial statement
carefully. Refer to the chart of accounts and the list of Labels
and Amount Descriptions provided for the exact wording of the
answer choices for text entries.
Question 22
For the past several years, Jolene Upton has operated a part-
time consulting business from her home. As of July 1, 2019,
Jolene decided to move to rented quarters and to operate the
business, which was to be known as Gourmet Consulting, on a
full-time basis. Gourmet Consulting entered into the following
transactions during July:
Jul.
1
The following assets were received from Jolene Upton: cash,
$19,000; accounts receivable, $22,300; supplies, $3,800; and
office equipment, $8,900. There were no liabilities received.
1
Paid three months’ rent on a lease rental contract, $6,000.
2
Paid the premiums on property and casualty insurance policies,
$4,500.

4
Received cash from clients as an advance payment for services
to be provided and recorded it as unearned fees, $8,000.
5
Purchased additional office equipment on account from Office
Necessities Co., $5,100.
6
Received cash from clients on account, $12,750.
10
Paid cash for a newspaper advertisement, $500.
12
Paid Office Necessities Co. for part of the debt incurred on July
5, $3,000.
12
Provided services on account for the period July 1–12, $14,200.
14
Paid receptionist for two weeks’ salary, $1,500.
Record the following transactions on Page 2 of the journal:
Jul.
17
Received cash from cash clients for fees earned during the
period July 1–17, $10,400.
18
Paid cash for supplies, $1,000.
20
Provided services on account for the period July 13–20, $9,000.

24
Received cash from cash clients for fees earned for the period
July 17–24, $8,500.
26
27
Paid receptionist for two weeks’ salary, $1,500.
29
Paid telephone bill for July, $325.
31
Paid electricity bill for July, $675.
31
July 25–31, $7,100.
31
Provided services on account for the remainder of July, $5,500.
31
Jolene withdrew $20,000 for personal use.
Required: ANSWER ALL BELOW AND LABEL JUST PUT
ANSWERS THAT GO IN EVERY JOURNAL ENTRy
1.
Journalize each transaction in a two-column journal starting on
Page 1, referring to the chart of accounts in selecting the
accounts to be debited and credited. (Do not insert the account
numbers in the journal at this time.)
2.
Post the July transactions.
A.

Download the spreadsheet in the Ledger panel and save the
Excel file to your computer. Use the spreadsheet to post the
July transactions from the journal to a ledger of four-column
accounts. Be sure to save your work in Excel as it will be used
to complete the following steps in Part 1 of this problem as well
as steps in Part 2 of this problem. Your input into the
spreadsheet will not be included in your grade in CengageNOW
on this problem.
B.
Add the appropriate posting reference to the journal in
CengageNOW.
3.
Prepare an unadjusted trial balance.
4.
At the end of July, the following adjustment data were
assembled. Analyze and use these data to complete requirements
(5) and (6).
•
Insurance expired during July is $375.
•
Supplies on hand on July 31 are $2,850.
•
Depreciation of office equipment for July is $400.
•
Accrued receptionist salary on July 31 is $140.
•
Rent expired during July is $2,000.
•
Unearned fees on July 31 are $3,000.
5.
(Optional) On your own paper or spreadsheet, enter the
unadjusted trial balance on an end-of-period work sheet and
complete the spreadsheet. Find a blank end-of-period work
sheet in the Excel spreadsheet you previously downloaded.

6.
A.
Journalize the adjusting entries on page 3 of the journal.
Adjusting entries are recorded on July 31.
B.
Use the attached spreadsheet in the Ledger panel to post the
adjusting entries to the ledger of four-column accounts,
inserting balances is the accounts affected. Add the appropriate
posting reference to the adjusting entries in the journal in.
7.
Prepare an adjusted trial balance.
ANSWER EVERYTHING! PLEASE BE SURE TO PUT THE
QUESTION NUMBER AND DOUBLE CHECK WORK
READ EVERYTHING AND ADDRESS ALL QUESTIONS!
LABEL EVERYTHING
Accounting Comprehensive Problem 1.
1. Create a Journal
1. C.
Journalize each of the May transactions in the two-column
journal starting on Page 5 of the journal. Refer to the Chart of
Accounts for exact wording of account titles. (Do not insert the
account numbers in the journal at this time.)
2. B.
CengageNOW.
6. A.
Journalize the adjusting entries on Page 7 of the journal. Refer
to the Chart of Accounts for exact wording of account titles.
6. C.
CengageNOW.

2. Create A Ledger
SPREADSHEET
and save the Excel file to your computer. Use the spreadsheet
to post the May transactions from the journal to a ledger of
four-column accounts. Be sure to save your work in Excel as it
will be used to complete the following steps in Part 1 of this
problem as well as steps in Part 2 of this problem. Your input
into the spreadsheet will not be included in your grade in
CengageNOW on this problem.
1. B.
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, enter Balance in the Item
column and enter ‘X’ in the Posting Reference column.
2. A.
Post the May transactions from the journal to a ledger of four-
column accounts.
6. B.
Post the adjusting entries to the ledger of four-column accounts,
inserting balances in the accounts affected.
3. Prepape a Unadjusted Trial Balance
Kelly Pitney began her consulting business, Kelly Consulting,
on April 1, 2019. The accounting cycle for Kelly Consulting for
April, including financial statements, was illustrated in this
chapter. 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, $4,500.
5
9
Paid cash for a newspaper advertisement, $225.
13
Paid Office Station Co. for part of the debt incurred on April 5,
$640.
15
Provided services on account for the period May 1–15, $9,180.
16
Paid part-time receptionist for two weeks’ salary including the
amount owed on April 30, $750.
17
Received cash from cash clients for fees earned during the
period May 1–16, $8,360.
Record the following transactions on Page 6 of the journal:
May
20
Purchased supplies on account, $735.
21
Provided services on account for the period May 16–20, $4,820.
25
May 17–23, $7,900.

27
28
Paid part-time receptionist for two weeks’ salary, $750.
30
Paid telephone bill for May, $260.
31
Paid electricity bill for May, $810.
31
May 26–31, $3,300.
31
Provided services on account for the remainder of May, $2,650.
31
Kelly withdrew $10,500 for personal use.
Required:
1.
The chart of accounts is shown in a separate panel and the post-
closing trial balance as of April 30, 2019, is shown below.
A.
Download the spreadsheet in the Ledger panel and save the
Excel file to your computer. Be sure to save your work in Excel
as it will be used to complete the following steps in Part 1 of
this problem as well as steps in Part 2 of this problem. Your
input into the spreadsheet will not be included in your grade in
CengageNOW on this problem.
B.
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, 2019, enter Balance in the
Item column and enter ‘X’ in the Posting Reference column.
C.
Journalize each of the May transactions in a two-column journal
starting on Page 5 of the journal. Refer to the Chart of Accounts
for exact wording of account titles. (Do not insert the account
numbers in the journal at this time.)
2.
Post the journal entries on pages 5 and 6 of the journal to the
ledger of four-column accounts.
A.
Use the spreadsheet to post the May transactions from the
journal to a ledger of four-column accounts.
B.
Add the appropriate posting reference to the journal.
3.
Prepare an unadjusted trial balance. Accounts with zero
balances can be left blank.
4.
At the end of May, the following adjustment data were
assembled. Analyze and use these data to complete parts (5) and
(6).
•
Insurance expired during May is $275.
•
Supplies on hand on May 31 are $715.
•
Depreciation of office equipment for May is $330.
•
Accrued receptionist salary on May 31 is $325.
•
Rent expired during May is $1,600.
•
Unearned fees on May 31 are $3,210.

5.
(Optional) On your own paper or spreadsheet, enter the
unadjusted trial balance on a 10-column end-of-period
spreadsheet (work sheet), and complete the spreadsheet. Find a
blank end-of-period work sheet in the Excel spreadsheet you
previously downloaded.
6.
A.
Journalize the adjusting entries on Page 7 of the journal. Refer
to the Chart of Accounts for exact wording of account titles.
B.
Post the adjusting entries to the ledger, inserting balances in the
accounts affected.
C.
Add the appropriate posting reference to the adjusting entries in
the journal in CengageNOW.
7.
Prepare an adjusted trial balance. Accounts with zero balances
can be left blank.
Kelly Consulting
POST-CLOSING TRIAL BALANCE
April 30, 2019
ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
22,100.00
2
Accounts Receivable
3,400.00

3
Supplies
1,350.00
4
Prepaid Rent
3,200.00
5
Prepaid Insurance
1,500.00
6
Office Equipment
14,500.00
7
Accumulated Depreciation
330.00
8
Accounts Payable
800.00
9
Salaries Payable
120.00
10
Unearned Fees
2,500.00
11
Kelly Pitney, Capital
42,300.00

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