ACT300 Portfolio Project: Kelly Consulting Practice Set

ACT300 Portfolio Project: Kelly Consulting Practice Set

You are given the following information:

• 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 $1,235.

 • 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).

The following can be download from the Module 8 Assignment page or the Course Information page

1. Journal page to copy and use

2. Ledger page to copy and use

3. Portfolio Project Excel Spreadsheet template with accounts pre‐entered

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.

May 5              Received cash from clients on account, $1,750

May 9              Paid cash for a newspaper advertisement, $100

May 13            Paid Office Station Co. for part of the debt incurred on April 5, $400

May 15            Recorded services provided on account for the period May 1‐15, $5,100.

May 16            Paid part‐time receptionist for two weeks' salary including the amount owed on April 13, $750.

May 17            Recorded cash from cash clients for fees earned during the period May 1‐16, $7,380

May 20            Purchased supplies on account, $500

 May 21           Recorded services provided on account for the period May 16‐20, $2,900.

May 25            Recorded cash from cash clients for fees earned for the period May 17‐23, $4,200. May 27     Received cash from clients on account, $6,600

May 28            Paid part‐time receptionist for two weeks' salary, $750.

May 30            Paid telephone bill for May, $150

May 31            Paid electricity bill for May, $225

May 31            Recorded cash from cash clients for fees earned for the period May 25‐31, $2,875. May 31     Recorded services provided on account for the remainder of May, $2,200.

May 31            Kelly withdrew $7,500 for personal use.

Portfolio Instructions

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 T‐accounts.

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.

Submit your work in a Portfolio Project Excel worksheet that you download from the Module 8 Assignments page. Make sure all the sections listed below are on the worksheet as a single document with each of the four sections described clearly identified.

Make sure you include the following sections in your final Excel Workbook:

I.                    The completed Worksheet on the given downloadable spreadsheet

II.                 Formal income statement, statement of owner's equity, and balance sheet (These may be prepared on separate tabs on the Excel Workbook where "Worksheet" is the first tab)

III.               Post‐Closing Trial Balance for May 31 IV. T‐ Accounts