For the past several years, Dawn Lytle has operated a part-time consulting business from her home

For the past several years, Dawn Lytle has operated a part-time consulting business from her home. As of October 1, 2008, Dawn decided to move to rented quarters and to operate the business, which was to be known as Sky's-The-Limit consulting, on a full-time basis. Sky's The-Limit Consulting entered into the following transactions during October:
Oct. 1. The following assets were received from Dawn Lytle: cash, $12,950; accounts receivable, $2,800; supplies, $1,500; and office equipment, $18,750. There were no liabilities received.
1. Paid three months' rent on a lease rental contract, $3,600.
2. Paid the premiums on property and casualty insurance policies, $2,400.
4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,150.
5. Purchased additional office equipment on account from Office Station Co., $2,500.
6. Received cash from clients on account, $1,900.
10. Paid cash for a newspaper advertisement, $325.
12. Paid Office Station Co. for part of the debt incurred on October 5, $1,250.
12. Recorded services provided on account for the period October 1-12, $3,750.
14. Paid part-time receptionist for two weeks' salary, $750.
17. Recorded cash from cash clients for fees earned during the period October 1-17, $6,250.
18. Paid cash for supplies, $600.
20. Recorded services provided on account for the period October 13-20, $2,100.
24. Recorded cash from cash clients for fees earned for the period October 17-24, $3,850.
26. Received cash from clients on account, $4,450.
27. Paid part-time receptionist for two weeks' salary, $750.
29. Paid telephone bill for October, $250.
31. Paid electricity bill for October, $300.
31. Recorded cash from cash clients for fees earned for the period October 25-31, $2,975.
31. Recorded services provided on account for the remainder of October, $1,500.
31. Dawn withdrew $5,000 for personal use.

Instructions
1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
11 Cash 
12 Accounts Receivable 
14 Supplies 
15 Prepaid Rent 
16 Prepaid Insurance 
18 Office Equipment 
19 Accumulated Depreciation 
21 Accounts Payable 
22 Salaries Payable 
23 Unearned Fees
31 Dawn Lytle, Capital
32 Dawn Lytle, Drawing
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense
55 Insurance Expense
59 Miscellaneous Expense
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of October, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
a. Insurance expired during October is $200.
b. Supplies on hand on October 31 are $875.
c. Depreciation of office equipment for October is $675.
d. Accrued receptionist salary on October 31 is $150.
e. Rent expired during October is $1,550.
f. Unearned fees on October 31 are $1,150.
5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner's equity, and a balance sheet.
9. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.