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					                                                                             COMPREHENSIVE PROBLEM 1

1. and 2.                                                 JOURNAL                                    Pages 5 and 6
                                                                                          Post.
Date                         Description                                                  Ref.    Debit    Credit
2012
May     3   Cash.......................................................................    11     3,000
               Unearned Fees................................................               23               3,000
        5   Cash.......................................................................    11     2,100
               Accounts Receivable......................................                   12               2,100
        9   Miscellaneous Expense ........................................                 59      300
               Cash ................................................................       11                 300
       13   Accounts Payable .................................................             21      400
               Cash ................................................................       11                 400
       15   Accounts Receivable ............................................               12     7,350
               Fees Earned....................................................             41               7,350
       16   Salary Expense .....................................................           51      630
            Salaries Payable ...................................................           22      120
               Cash ................................................................       11                 750
       17   Cash.......................................................................    11     6,150
               Fees Earned....................................................             41               6,150
       20   Supplies.................................................................      14      600
               Accounts Payable...........................................                 21                 600
       21   Accounts Receivable ............................................               12     6,175
               Fees Earned....................................................             41               6,175
         25   Cash.......................................................................     11      3,125
                 Fees Earned....................................................              41                3,125
         27   Cash.......................................................................     11     11,250
                 Accounts Receivable......................................                    12               11,250
         28   Salary Expense .....................................................            51       750
                 Cash ................................................................        11                  750
         30   Miscellaneous Expense ........................................                  59       120
                 Cash ................................................................        11                  120
         31   Miscellaneous Expense ........................................                  59       290
                 Cash ................................................................        11                  290
         31   Cash.......................................................................     11      2,800
                 Fees Earned....................................................              41                2,800

1. and 2.                                                   JOURNAL                                      Pages 5 and 6
                                                                                             Post.
Date                           Description                                                   Ref.    Debit     Credit
2012
May 31        Accounts Receivable ............................................                12      1,900
                 Fees Earned....................................................              41                1,900
         31   Dividend................................................................        32     15,000
                 Cash ................................................................        11               15,000

2., 6., and 9.
Cash                                                                                                                  11
                                                    Post.                                                 Balance
  Date                   Item                       Ref.              Dr.                   Cr.       Dr.       Cr.
2012
May     1   Balance........................            ...............   ...............   22,100   ...............
        3   .....................................   5         3,000       ...............   25,100   ...............
        5   .....................................   5         2,100       ...............   27,200   ...............
        9   .....................................   5   ...............            300      26,900   ...............
       13   .....................................   5   ...............            400      26,500   ...............
       16   .....................................   5   ...............            750      25,750   ...............
       17   .....................................   6         6,150       ...............   31,900   ...............
       25   .....................................   6         3,125       ...............   35,025   ...............
       27   .....................................   6       11,250        ...............   46,275   ...............
       28   .....................................   6   ...............            750      45,525   ...............
       30   .....................................   6   ...............            120      45,405   ...............
       31   .....................................   6   ...............            290      45,115   ...............
       31   .....................................   6         2,800       ...............   47,915   ...............
       31   .....................................   6   ...............       15,000        32,915   ...............

Accounts Receivable                                                                                              12
2012
May     1   Balance........................            ...............   ...............    3,400   ...............
        5   .....................................   5   ...............         2,100        1,300   ...............
       15   .....................................   5         7,350       ...............    8,650   ...............
       21   .....................................   6         6,175       ...............   14,825   ...............
       27   .....................................   6   ...............       11,250         3,575   ...............
       31   .....................................   6         1,900       ...............    5,475   ...............

Supplies                                                                                                         14
2012
May     1   Balance........................            ...............   ...............    1,350   ...............
       20   .....................................   6            600      ...............    1,950   ...............
        31   Adjusting ....................            7     ...............         1,200                750      ...............

Prepaid Rent                                                                                                                   15
                                                     Post.                                                     Balance
 Date                    Item                        Ref.          Dr.               Cr.               Dr.           Cr.
2012
May      1   Balance........................                ...............   ...............         3,200       ...............
        31   Adjusting ....................           7      ...............         1,600             1,600       ...............

Prepaid Insurance                                                                                                              16
2012
May      1   Balance........................                ...............   ...............         1,500       ...............
        31   Adjusting ....................           7      ...............            300            1,200       ...............

Office Equipment                                                                                                               18
2012
May      1   Balance........................           5     ...............   ...............       24,500        ...............

Accumulated Depreciation                                                                                                       19
2012
May      1   Balance........................                ...............   ...............   ...............            330
        31   Adjusting ....................           7      ...............            330      ...............            660

Accounts Payable                                                                                                               21
2012
May      1   Balance........................                ...............   ...............   ...............            800
        13   .....................................    5               400      ...............   ...............            400
        20   .....................................     6     ...............            600      ...............      1000

Salaries Payable                                                                                                           22
2012
May      1   Balance........................                ...............   ...............   ...............       120
        16   .....................................    5               120      ...............   ...............       —
        31   Adjusting ....................           7      ...............            300      ...............       300

Unearned Fees                                                                                                              23
2012
May      1   Balance........................                ...............   ...............   ...............     2,500
         3   .....................................    5      ...............         3,000       ...............     5,500
        31   Adjusting ....................           7            4,000       ...............   ...............     1,500

Capital Stock                                                                                                              31
                                                     Post.                                                     Balance
 Date                    Item                        Ref.          Dr.               Cr.               Dr.           Cr.
2012
May      1   Balance........................                ...............   ...............   ...............    40,000

Retained Earnings                                                                                                          32
2012
May      1   Balance........................                ...............   ...............   ...............    12,300
        31   Closing ........................         8                        25,740....        —                  38,040
        31   Closing ........................         8      15,000            ...............              —       23,040


Dividends                                                                                                                  33
2012
May 31    .....................................   6       15,000        ...............       15,000        ...............
     31   Closing ........................        8   ...............       15,000             —                  —

Income Summary                                                                                                          34
2012
May 31    Closing ........................        8   ...............       31,500        ...............       31,500
     31   Closing ........................        8         5,760       ...............   ...............       25,740
     31   Closing ........................        8       25,740        ...............         —                —

Fees Earned                                                                                                             41
2012
May 15    .....................................   5   ...............         7,350       ...............        7,350
     17   .....................................   6   ...............         6,150       ...............       13,500
     21   .....................................   6   ...............         6,175       ...............       19,675
     25   .....................................   6   ...............         3,125       ...............       22,800
     31   .....................................   6   ...............         2,800       ...............       25,600
     31   .....................................   6   ...............         1,900       ...............       27,500
     31   Adjusting ....................          7   ...............         4,000       ...............       31,500
     31   Closing ........................        8       31,500        ...............         —                —

Salary Expense                                                                                                          51
2012
May 16    .....................................   5            630      ...............          630        ...............
     28   .....................................   6            750      ...............        1,380        ...............
     31   Adjusting ....................          7            300      ...............        1,680        ...............
     31   Closing ........................        8   ...............         1,680            —                  —
Rent Expense                                                                                                         52
                                                     Post.                                           Balance
 Date                   Item                         Ref.          Dr.               Cr.         Dr.       Cr.
2012
May 31       Adjusting ....................            7           1,600       ...............   1,600   ...............
     31      Closing ........................          8     ...............         1,600       —             —

Supplies Expense                                                                                                     53
2012
May 31       Adjusting ....................            7           1,200       ...............   1,200   ...............
     31      Closing ........................          8     ...............         1,200       —             —

Depreciation Expense                                                                                                 54
2012
May 31       Adjusting ....................            7              330      ...............    330    ...............
     31      Closing ........................          8     ...............            330      —             —

Insurance Expense                                                                                                    55
2012
May 31       Adjusting ....................            7              300      ...............    300    ...............
     31      Closing ........................          8     ...............            300      —             —

Miscellaneous Expense                                                                                                59
2012
May      9   .....................................     5              300      ...............    300    ...............
        30   .....................................     6              120      ...............    420    ...............
          31      .....................................      6                 290        ...............      710     ...............
          31      Closing ........................           8        ...............              710        —              —


3.

                                                                                        KELLY CONSULTING
                                                                                        Unadjusted Trial Balance
                                                                                             May 31, 2012
                                                                                                             Debit      Credit
                                                                                                            Balances   Balances
Cash...................................................................................................      32,915
Accounts Receivable ........................................................................                  5,475
Supplies .............................................................................................        1,950
Prepaid Rent.....................................................................................             3,200
Prepaid Insurance............................................................................                 1,500
Office Equipment .............................................................................               24,500
Accumulated Depreciation..............................................................                                       330
Accounts Payable .............................................................................                             1,000
Salaries Payable ...............................................................................
Unearned Fees ..................................................................................                          5,500
Capital Stock ....................................................................................                       40,000
Retained Earnings............................................................................                            12,300
Dividend ............................................................................................        15,000
Fees Earned ......................................................................................                       27,500
Salary Expense .................................................................................              1,380
Rent Expense ....................................................................................
Supplies Expense..............................................................................
Depreciation Expense ......................................................................
Insurance Expense ...........................................................................
Miscellaneous Expense ....................................................................                 710
                                                                                                        86,630         86,630

5.
      A                        B                      C          D             E                   F             G      H        I     J      K      L      M

                                                                            KELLY CONSULTING
                                                                End-of-Period Spreadsheet (Work Sheet)
                                                                     For the Month Ended May 31, 2012

                                                    Unadjusted                                                 Adjusted          Income        Balance
                                                   Trial Balance              Adjustments                    Trial Balance      Statement        Sheet
              Account Title                         Dr.     Cr.              Dr.       Cr.                    Dr.     Cr.       Dr.   Cr.     Dr.    Cr.
            1 Cash                                  32,915                                                   32,915                         32,915           1
            2 Accounts Receivable                    5,475                                                    5,475                         5,475            2
            3 Supplies                               1,950                                   (b) 1,200           750                        750              3
            4 Prepaid Rent                           3,200                                    (e) 1,600       1,600                         1,600            4
            5 Prepaid Insurance                      1,500                                    (a) 300         1,200                         1,200            5
            6 Office Equipment                      24,500                                                   24,500                         24,500           6
            7 Accum. Depreciation                                 330                        (c)       330               660                       660       7
            8 Accounts Payable                                   1000                                                   1000                       1,000     8
            9 Salaries Payable                                       0                       (d)       240               240                       240       9
           10 Unearned Fees                                     5,500 (f) 4,000                                         1500                       1,500    10
           11 Capital Stock                                   40,000                                                   40000                       40,000   11
              Retained Earnings                               12,300                                                   12300                       12,300
            12 Dividends              15000                               15,000                     15,000        12
            13 Fees Earned                   27,500            (f) 4,000         31500        31,500               13
            14 Salary Expense          1380          (d) 240               1,620       1,620                       14
            15 Rent Expense                          (e) 1,600             1,600       1,600                       15
            16 Supplies Expense                     (b) 1,200              1,200       1,200                       16
            17 Depreciation Expense                  (c) 330                 330       330                         17
            18 Insurance Expense                     (a) 300                 300       300                         18
            19 Miscellaneous Expense     710                                 710       710                         19
            20                       86,630 86,630     7,670     7,670   87,200 87,200 5,760 31,500 81,440 55,700 20
            21 Net income                                                              25,740               25,740 21
            22                                                                         31,500 31,500 81,440 81,440 22


6.                                                        JOURNAL                                        Page 7
                                                                                        Post.
     Date                                                                               Ref.     Debit   Credit
                                                                                   Adjusting Entries
2012
May 31         Insurance Expense ...............................................         55       300
                  Prepaid Insurance .........................................            16                300
                     Insurance expired.
        31     Supplies Expense..................................................        53      1,200
                  Supplies...........................................................    14               1,200
                     Supplies used ($1,950 – $750).
        31     Depreciation Expense ..........................................           54       330
                  Accumulated Depreciation ...........................                   19                330
                            Equipment depreciation.
          31      Salary Expense .....................................................               51       300
                     Salaries Payable .............................................                  22                  300
                        Accrued salaries.
          31      Rent Expense........................................................               52     1,600
                     Prepaid Rent ..................................................                 15                1,600
                        Rent expired.
          31      Unearned Fees......................................................                23     4,000
                     Fees Earned....................................................                 41                4,000
                       Unearned fees ($5,500 – $1,500).


7.

                                                                                       KELLY CONSULTING
                                                                                       Adjusted Trial Balance
                                                                                           May 31, 2012
                                                                                                           Debit      Credit
                                                                                                          Balances   Balances
Cash...................................................................................................    32,915
Accounts Receivable ........................................................................                5,475
Supplies .............................................................................................        750
Prepaid Rent.....................................................................................           1,600
Prepaid Insurance............................................................................               1,200
Office Equipment .............................................................................             24,500
Accumulated Depreciation..............................................................                                   660
Accounts Payable .............................................................................                         1,000
Salaries Payable ...............................................................................                         240
Unearned Fees ..................................................................................                     1,500
Capital Stock ....................................................................................                  40,000
Retained Earnings............................................................................                       12,300
Dividends ..........................................................................................    15,000
Fees Earned ......................................................................................                  31,500
Salary Expense .................................................................................         1,620
Rent Expense ....................................................................................        1,600
Supplies Expense..............................................................................           1,200
Depreciation Expense ......................................................................                330
Insurance Expense ...........................................................................              300
Miscellaneous Expense ....................................................................                 710
                                                                                                        87,200      87,200

8.
                                                                                 KELLY CONSULTING
                                                                                    Income Statement
                                                                            For the Month Ended May 31, 2012
Fees earned ....................................................................................                 $ 31,500
Expenses:
     Salary expense .......................................................................            $1,620
     Rent expense ..........................................................................            1,600
     Supplies expense....................................................................               1,200
     Depreciation expense ............................................................                    330
     Insurance expense .................................................................                  300
     Miscellaneous expense ..........................................................                     710
       Total expenses....................................................................                           5,760
Net income .....................................................................................                 $ 25,740


                                                                                     KELLY CONSULTING
                                                                         Statement of Retained Earnings
                                                                        For the Month Ended May 31, 2012
Retained earnings, May 1, 2012...................................................                               $ 12,300
Net income for the month.............................................................              $ 25,740
Less Dividends...............................................................................        15,000
Increase in Retained Earnings.....................................................                                10,740
Retained Earnings, May 31, 2012................................................                                 $ 23,040


                                                                                 KELLY CONSULTING
                                                                                    Balance Sheet
                                                                                    May 31, 2012
                  Assets                                                               Liabilities
Current assets:                                                           Current liabilities:
 Cash................................. $ 32,915                            Accounts payable ........ $ 1,000
 Accounts receivable .......              5,475                            Salaries payable...........    240
 Supplies ...........................       750                            Unearned fees .............. 1,500
 Prepaid rent....................         1,600                              Total liabilities..........      $       2,740
 Prepaid insurance ..........             1,200
   Total current assets.....                     $41,940
Property, plant, and                                                                Owner’s Equity
 equipment: ......................                                        Capital Stock ..................          40,000
 Office equipment............ $24,500                                      Retained Earnings.......                     23,040
   Less accum. depr.........                660   23,840                  Total liabilities and
Total assets.........................           $ 65,780                   Equity ...........................      $ 65,780


9.                                                          JOURNAL                                                Page 8
                                                                                           Post.
    Date                                                                                           Ref.        Debit      Credit
                        Closing Entries
2012
May 31            Fees Earned ..........................................................               41     31,500
                     Income Summary ..........................................                         33                 31,500
          31      Income Summary.................................................                      33       5,760
                     Salary Expense...............................................                     51                   1,620
                     Rent Expense..................................................                    52                   1,600
                     Supplies Expense ...........................................                      53                   1,200
                     Depreciation Expense....................................                          54                     330
                     Insurance Expense.........................................                        55                     300
                     Miscellaneous Expense..................................                           59                     710
          31      Income Summary.................................................                      33     25,740
                     Retained Earnings .........................................                       31                 25,740
          31      Retained Earnings ...............................................                    31     15,000
                     Dividends........................................................                 32                 15,000


10.
                                                                                      KELLY CONSULTING
                                                                                     Post-Closing Trial Balance
                                                                                           May 31, 2012
                                                                                                             Debit       Credit
                                                                                                            Balances    Balances
Cash................................................................................................         32,915
Accounts Receivable .....................................................................                     5,475
Supplies ........................................................................................               750
Prepaid Rent..................................................................................        1,600
Prepaid Insurance.........................................................................            1,200
Office Equipment ..........................................................................          24,500
Accumulated Depreciation...........................................................                              660
Accounts Payable ..........................................................................                    1,000
Salaries Payable ............................................................................                    240
Unearned Fees ...............................................................................                  1,500
Capital Stock .................................................................................               40,000
Retained Earnings.........................................................................                    23,040
     Totals ......................................................................................   66,440   66,440

				
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