Let's first journalize each of the May transactions for Kelly Consulting using the provided chart of accounts:
Journal Entries for Kelly Consulting
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 | | 4,500 | Unearned Fees | | | 4,500
May 5: Received cash from clients on account, $2,450.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Cash | | 2,450 | Accounts Receivable | | | 2,450
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
May 15: Recorded services provided on account for the period May 1–15, $9,180.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Accounts Receivable | | 9,180 | Fees Earned | | | 9,180
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Salaries Payable | | 120 | Salary Expense | | 630 | Cash | | | 750
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Cash | | 8,360 | Fees Earned | | | 8,360
May 20: Purchased supplies on account, $735.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Supplies | | 735 | Accounts Payable | | | 735
May 21: Recorded services provided on account for the period May 16–20, $4,820.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Accounts Receivable | | 4,820 | Fees Earned | | | 4,820
May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Cash | | 7,900 | Fees Earned | | | 7,900
May 27: Received cash from clients on account, $9,520.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Cash | | 9,520 | Accounts Receivable | | | 9,520
May 28: Paid part-time receptionist for two weeks' salary, $750.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Salary Expense | | 750 | Cash | | | 750
May 30: Paid telephone bill for May, $260.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Miscellaneous Expense | | 260 | Cash | | | 260
May 31: Paid electricity bill for May, $810.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Miscellaneous Expense | | 810 | Cash | | | 810
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Cash | | 3,300 | Fees Earned | | | 3,300
May 31: Recorded services provided on account for the remainder of May, $2,650.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Accounts Receivable | | 2,650 | Fees Earned | | | 2,650
May 31: Paid dividends, $10,500.
Description | Post. Ref. | Debit | Credit ---------------|-------------|---------|--------- Dividends | | 10,500 | Cash | | | 10,500
Unadjusted Trial Balance for Kelly Consulting as of May 31, 20Y8
| Account | Account No. | Debit | Credit | |---------------------------|--------------|------------|-------------| | Cash | 11 | 40,750 | | | Accounts Receivable | 12 | 11,370 | | | Supplies | 14 | 2,085 | | | Prepaid Rent | 15 | 3,200 | | | Prepaid Insurance | 16 | 1,500 | | | Office Equipment | 18 | 14,500 | | | Accumulated Depreciation | 19 | | 330 | | Accounts Payable | 21 | | 1,535 | | Salaries Payable | 22 | | 120 | | Unearned Fees | 23 | 4,500 | 2,500 | | Common Stock | 31 | | 30,000 | | Retained Earnings | 32 | 12,300 | | | Dividends | 33 | 10,500 | | | Fees Earned | 41 | | 39,050 | | Salary Expense | 51 | 1,380 | | | Rent Expense | 52 | | | | Supplies Expense | 53 | | | | Depreciation Expense | 54 | | | | Insurance Expense | 55 | | | | Miscellaneous Expense | 59 | 1,270 | | | | |------------|-------------| | Total | | 80,905 | 80,905 |
Explanation:
- Cash increased due to cash received from clients and payments made.
- Accounts Receivable increased due to services provided on account.
- Supplies, prepaid expenses, and expenses incurred (salaries, miscellaneous) reflect the operational costs.
- Unearned Fees represent the cash advance received.
- Accounts Payable decreased as a payment was made against previously incurred expenses.
- Fees Earned increased due to services rendered both on account and in cash.
- Dividends paid reduce cash and increase the dividends account.
This unadjusted trial balance reflects all the transactions completed by the end of May and confirms that the total debits equal total credits, as expected in a double-entry accounting system.
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