Kelly Pitney began her consulting business Kelly Consulting

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016.

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. Received cash from clients on account, $2,450.

9. Paid cash for a newspaper advertisement, $225.

13. Paid Office Station Co. for part of the debt incurred on April 5, $640.

15. Recorded services provided 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. Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.

20. Purchased supplies on account, $735.

21. Recorded services provided on account for the period May 16-20, $4,820.

25. Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.

27. Received cash from clients on account, $9,520.

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. Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.

31. Recorded services provided on account for the remainder of May, $2,650.

31. Kelly withdrew $10,500 for personal use.

Instructions:

At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts 5 & 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. Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.

6. Journalize and post the adjusting entries.

7. Prepare an adjusted trial balance.

Adjusting Entry