Date Description

The following assets were received from Kelly Pitney: Cash $13,100; Accounts Receivable
Jan. 1 $3,000; Supplies $1,400; and Office Equipment $12,500. There were no Liabilities
received.

1 Paid 3 months' rent on a lease rental contract $4,800.

2 Paid premiums on property and casuality insurance policies, $1,800.
4 Received cash from clients as an advance payment for services to be provided and
recorded it as unearned fees $5,000.
5 Purchased additional office equipment on account from Office Station Co. $2,000.
6 Received cash on account$1,800
10 Paid cash on a newspaper advertisement $120.
12 Paid Office Station Co. for part of the debt incurred on Apr. 5, $1,200.
12 Recorded services provided on account for the period April 1-12, $4,200.
14 Paid part-time receptionist for two weeks salary, $750.
17 Recorded cash from cash clients for fees earned during the period April 1-16, $6,250.
18 Paid cash for supplies $800.
20 Recorded services provided on account for the period April 13-20, $2,100.
24 Recorded cash from cash clients for fees earned during the period April 17-24, $3,850.
26 Received cash from clients on account $5,600.
27 Paid part-time receptionist for two weeks salary, $750.
29 Paid telephone bill for April, $130.
30 Paid electricity bill for April $200.
30 Recorded cash from cash clients for fees earned for the period April 25-30, $3,050
30 Recorded services provided on account for the remainder of April, $1,500.
30 Kelly withdrew $6,000 for personal use.
ADJUSTMENTS
Jan. 31 Insurance expired during April is $300.
31 Supplies on hand on April 30 are $1,350.
31 Depreciation of office equipment for april 30 is $330.
31 Accrued receptionist salary on April 30 is @120.
31 Rent expired during April is $1,600.
31 Unearned fees on April 30 are $2,500.
 Debits Credits

Cash
A/R
KP Capital
Supplies
Off. Eq
Prepaid Rent Cash
Prepaid Insurance Cash
Cash Unearned Fees
Off Equip A/P
Cash A/R
Misc Exp Cash
A/P Cash
A/R Fees Earned
Salary Expense Cash
Cash Fees Earned
Supplies Cash
A/R Fees Earned
Cash Fees Earned
Cash A/R
Salary Expense Cash
Utility Expense Cash
Utility Expense Cash
Cash Fees Earned
A/R Fees Earned
KT Drawing Cash

Insurance Expense Prepaid Insurane

Supplies Expense Supplies
Depreciation Expense Acc. Dep. Off. Equip
Salary Expense Salaries Payable
Rent Expense Prepaid Rent
Unearned Fees Fees Earned
 Journal
Date Description Post Ref Debit Credit
2010
Jan 1 Cash 13,100
A/R 3,000
Supplies 1,400
Office Equipment 12,500
KP Capital 30,000
1 Prepaid Rent 4,800
Cash 4,800
2 Prepaid Insurance 1,800
Cash 1,800
4 Cash 5,000
Unearned Fees 5,000
5 Office Equipment 2,000
A/P 2,000
6 Cash 1,800
A/R 1,800
10 Misc. Expense 120
Cash 120
12 A/P 1,200
Cash 1,200
12 A/R 4,200
Fees Earned 4,200
14 Salary Expense 750
Cash 750
17 Cash 6,250
Fees Earned 6,250
18 Supplies 800
Cash 800
20 A/R 2,100
Fees Earned 2,100
24 Cash 3,850
Fees Earned 3,850
26 Cash 5,600
A/R 5,600
27 Salary Expense 750
Cash 750
29 Utilities Expense 130
Cash 130
31 Utilities Expense 200
Cash 200
31 cash 3,050
Fees Earned 3,050
31 A/R 1,500
Fees Earned 1,500
31 KP Drawing 6,000
Cash 6,000
AJUSTMENTS
31 Insurance Expense 300
Prepaid Insurance 300
31 Supplies Expense 850
Supplies 850
31 Depreciation Expense 330
Acc. Dep. Off. Equip 330
31 Salaries Expense 120
Salaries Payable 120
31 Rent Expense 1,600
Prepaid Rent 1,600
31 Unearned Fees 2,500
Fees Earned 2,500
CLOSING ENTRIES
31 Fees Earned 23,450
Income Summary 23,450
Closing of Revenue accounts in Income Summary
31 Income Summary 5,150
Salary Expense 1,620
Rent Expense 1,600
Supplies Expense 850
Depreciation Expense 330
Insurance Expense 300
Utility Expense 330
 Misc. Expense 120
Closing of Expense accounts in Income Summary
31 Income Summary 18,300
KP Capital 18,300
Closing of Income Summary (Profit) into KP Capital
31 KP Capital 6,000
KP Drawing 6,000
Closing of KP Drawing account into KP Capital
 Ledger
Account: Cash Account No 11
Balance
Date Post Ref Debit Credit Debit Credit
2009
Apr. 1 1 13,100 13,100
1 1 4,800 8,300
2 1 1,800 6,500
4 1 5,000 11,500
6 1 1,800 13,300
10 1 120 13,180
12 1,200 11,980
14 750 11,230
17 6,250 17,480
18 800 16,680
24 3,850 20,530
26 5,600 26,130
27 750 25,380
29 130 25,250
30 200 25,050
30 3,050 28,100
30 6,000 22,100

Account: Accounts Receivable Account No 12

Balance
Date Post Ref Debit Credit Debit Credit
2009
Dec. 16 1 3,000 3,000
21 1 1,800 1,200
31 4,200 5,400
2,100 7,500
5,600 1,900
1,500 3,400

Account: Supplies Account No 14

Balance
Date Post Ref Debit Credit Debit Credit
2009
1,400 1,400
800 2,200

Account: Prepaid Insurance Account No 15

Balance
Date Post Ref Debit Credit Debit Credit
2009
Apr. 2 1 1,800 1,800

Account: Office Equipment Account No 18

Balance
Date Post Ref Debit Credit Debit Credit
2009
Dec. 4 1 12,500 12,500
2,000 14,500
 Unadjusted Trial Balance Adjustments
Debit Debit
Balances Credit Balances Balances
Cash 22,100 -
Accounts Receivable 3,400 -
Supplies 2,200 -
Prepaid Rent 4,800
Prepaid Insurance 1,800 -
Office Equipment 14,500 -
Less: Acc. Dep. - Office Equipment
Accounts Payable - 800 -
Salaries Payable - -
Unearned Fees - 5,000 2,500
30,000
KP Capital

KP Drawings 6,000 -
Fees Earned 20,950
Salary Expense 1,500 120
Rent Expense - 1,600
Supplies Expense - 850
Depreciation Expense - - 330
Insurance Expense - - 300
Utilities Expense 330 -
Misc. Expense 120 -

Income Summary

56,750 56,750 5,700

Profit
 Income Statement Balance Sheet
Adjustments Adjusted Trial Balance For the Month Ended 31-01-2010 As on 31-01-2010
Credit Debit Credit Debit Credit Debit
Balances Balances Balances Balances Balances Balances
22,100 22,100
3,400 3,400
850 1,350 1,350
1,600 3,200 3,200
300 1,500 1,500
14,500 14,500
330 - 330 -
- 800 -
120 - 120 -
- 2,500 -
30,000 -

6,000 6,000
2,500 - 23,450 - 23,450
1,620 1,620 -
1,600 1,600 -
850 850 -
330 330 -
300 300 -
330 330 -
120 120 -

5,700 57,200 57,200 5,150 23,450 52,050

18,300
23,450 23,450 52,050
 Balance Sheet Post Closing Trial Balance or
As on 31-01-2010 CLOSING ENTRIES EFFECT Final Balance Sheet
Credit Debit Credit Debit Credit
Balances Balances Balances Balances Balances
- 22,100 - 22,100 -
- 3,400 - 3,400 -
- 1,350 - 1,350 -
- 3,200 - 3,200 -
- 1,500 - 1,500 -
- 14,500 - 14,500 -
330 - 330 (300) -
800 - 800 - 800
120 - 120 - 120
2,500 - 2,500 - 2,500
30,000 - 30,000
18,300 42,300
6,000
- 6,000 6,000
23,450
1,620
1,600
850
330
300
330
120
23,450
5,150
18,300
33,750 86,650 86,650 45,750 45,720
18,300
52,050
 KP Consulting
Income Statement
For the Mponth Ended Jan 31, 2010

REVENUE
Fees Earned $ 23,450

EXPENSES
Salary Expense $ 1,620
Rent Expense 1,600
Supplies Expense 850
Depreciation Expense 330
Insurance Expense 300
Utilities Expense 330
Misc. Expense 120
Total Expenses 5,150
Net Income $ 18,300
 KP Consulting
Statement of Owner's Equity
For the Month Ended Jan 31, 2010

KP Capital April 01, 2010 $ -

Investment During the Month $ 30,000
Net Income for the Month 18,300
$ 48,300
Less Withdrawals 6,000
Increase in Owner's Capital 42,300
KP Capital April 30, 2010 $ 42,300
 KP Consulting
Balance Sheet
Jan 31, 2010

Assets
Current Assets
Cash $ 22,100
Accounts Receivable 3,400
Supplies 1,350
Prepaid Rent 3,200
Prepaid Insurance 1,500
Total Current Assets $ 31,550

Property, plant and equipment

Office Equipment $ 14,500
Less: Acc. Dep. - Office Equipment 330
Total property, plant and equipment 14,170
Total Assets $ 45,720
 Consulting
lance Sheet
an 31, 2010

Liabilities
Current Liabilities
Accounts Payable $ 800
Salaries Payable 120
Unearned Fees 2,500
Total Liabilities $ 3,420

Owner's Equity

KP Capital 42,300

Total Liabilities and Owner's Equity $ 45,720