ACT300 Portfolio Project -Kelly Consulting
You are given the following information below:
Post closing trial balance for April 30, 2008
Transactions for the month of May 2008
Adjustments for May 31,2008
Insurance was purchased for a one-year period, starting on March 1, 2008.
Rent was prepaid on January 1, 2008, for a one-year period, starting on January 1.
Office equipment has a 5 year life, with a $2,500 salvage value.
A supplies inventory count shows an ending balance of $1350.
Assume that the receptionist works 5 days a week and earns an even amount per day. The May
28th payroll pays her up to May 28th (Wednesday).
Kelly Consulting Transactions for May 2008
May 3 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $1,550.
Received cash from clients on account, $1,750.
Paid cash for a newspaper advertisement, $100
Paid Office Station Co. for part of the debt incurred on April 5, $400
Recorded services provided on account for the period May 1-15, $5,100.
Paid part-time receptionist for two weeks’ salary including the amount owed on April 13, $750.
Recorded cash from cash clients for fees earned during the period May 1-16,
Purchased supplies on account, $500.
Recorded Fees Earned services provided on account for the period May 16-20, $2900
Recorded cash from cash clients for fees earned for the period May 17-23,
Received cash from clients on account, $6,600.
Paid part-time receptionist for two weeks’ salary, $750.
Paid telephone bill for May, $150.
Paid electricity bill for May, $225.
Recorded cash from cash clients for fees earned for the period May 25-31,
(a) Recorded services provided on account for the remainder of May, $2,200.
(b) Kelly withdrew $7,500 for personal use.
(c) Supplies on hand total $1,000.
(d) Prepaid rent of $1,200 has expired.
(e) Prepaid insurance of $1,000 has expired
(f) Record depreciation for office equipment $500.
(g) Unearned fees totaling $2,500 have been earned.
Instructions are as follows:
1. Record the ending balances from the April 30 post closing trial balance into the ledger sheets or alternatively, you may create T-accounts on an Excel spreadsheet.
2. Record journal entries for the May transactions on the journal sheets given or create a
spreadsheet configured as a journal sheet.
3. Post the journal entries to the ledger sheets or if you created T-accounts post the entries to your
4. Enter the ending balances from the ledger or T-accounts on to the worksheet trial balance columns.
5. Enter the adjustments directly on to the worksheet.
6. Extend to the adjusted trial balance columns.
7. Extend to the financial statement columns.
8. Prepare the financial statements.
9. Enter the closing entries on to the worksheet.
10. Prepare the post closing trial balance for May.
Make sure you include the following in your final Excel Workbook:
1. The completed Worksheet on the given downloadable spreadsheet.
2. Formal income statement, statement of owner’s equity, and balance sheet. These may be prepared on separate tabs on the Excel Workbook where the “Worksheet” is the first tab.
3. Post Closing Trial Balance for May 31.
4. T- Accounts