Chapter 4 Completing the Accounting Cycle
165
E X H I B I T 9
Journal Entries for April, Kelly
Consulting, P.C.
Continued
Journal
Page 1
Date Description
Post. Ref.
Debit Credit
Apr. 1
Cash 11
13,100 Accounts Receivable
12 3,000
Supplies 14
1,400 Office Equipment
18 12,500
Capital Stock 31
30,000 1
Prepaid Rent 15
4,800 Cash
11 4,800
2 Prepaid Insurance
16 1,800
Cash 11
1,800 4
Cash 11
5,000 Unearned Fees
23 5,000
5 Office Equipment
18 2,000
Accounts Payable 21
2,000 6
Cash 11
1,800 Accounts Receivable
12 1,800
10 Miscellaneous Expense
59 120
Cash 11
120 12
Accounts Payable 21
1,200 Cash
11 1,200
12 Accounts Receivable
12 4,200
Fees Earned 41
4,200 14
Salary Expense 51
750 Cash
11 750
Journal
Page 2
Date Description
Post. Ref.
Debit Credit
Apr. 17
Cash 11
6,250 Fees Earned
41 6,250
18 Supplies
14 800
Cash 11
800 20
Accounts Receivable 12
2,100 Fees Earned
41 2,100
24 Cash
11 3,850
Fees Earned 41
3,850 26
Cash 11
5,600 Accounts Receivable
12 5,600
27 Salary Expense
51 750
Cash 11
750 29
Miscellaneous Expense 59
130 Cash
11 130
2014 2014
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Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook andor eChapters. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
166
Chapter 4 Completing the Accounting Cycle
The journal entries for Kelly Consulting have been posted to the ledger shown in Exhibit 17 on pages 172–173.
Step 3. Preparing an Unadjusted Trial Balance
An unadjusted trial balance is prepared to determine whether any errors have been made in posting the debits and credits to the ledger. The unadjusted trial balance
shown in Exhibit 10 does not provide complete proof of the accuracy of the ledger. It indicates only that the debits and the credits are equal. This proof is of value, however,
because errors often affect the equality of debits and credits. If the two totals of a trial balance are not equal, an error has occurred that must be discovered and corrected.
E X H I B I T 9
Journal Entries for April, Kelly
Consulting, P.C. concluded
Journal
Page 2
Date Description
Post. Ref.
Debit Credit
Apr. 30
Miscellaneous Expense 59
200 Cash
11 200
30 Cash
11 3,050
Fees Earned 41
3,050 30
Accounts Receivable 12
1,500 Fees Earned
41 1,500
30 Dividends
33 6,000
Cash 11
6,000
2014
E X H I B I T 1 0
Unadjusted Trial Balance, Kelly
Consulting, P.C.
Kelly Consulting, P.C.
Unadjusted Trial Balance April 30, 2014
Debit Balances
Credit Balances
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,100
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200
Prepaid Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,800
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Office Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,500
Accumulated Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
800 Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unearned Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Fees Earned. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,950
Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplies Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450
56,750 56,750
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© C eng
age Lear ning
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Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook andor eChapters. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 4 Completing the Accounting Cycle
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