Question

Kassidy Alba started The Alba Consulting Group, a new business that began operations on May 1, 2014. The Alba Consulting Group completed the following transactions during the month of May:

May	1		K. Alba invested $80,000 cash in the business
	1		Rented a furnished office and paid $4,000 cash for four month’s rent
	3		Purchased $1,890 of office equipment on credit
	3		Paid $5,000 cash for the premium on a 10-month insurance policy
	5		Paid $250 cash for this month’s cleaning services
	7		Paid $425 cash for office supplies
	8		Provided consulting services for a client and immediately collected $5,400 cash
	10		Purchased a used Toyota Camry for business use – paid $8,000 cash -the expected life of the vehicle is 4 years, with $800 salvage value
	12		Provided $2,500 of consulting services for a client on credit
	15		Paid $750 cash for an assistant’s salary for the first half of this month
	20		Received $2,000 cash, partial payment for the services provided on May 12
	22		Provided $3,200 of consulting services on credit
	25		Received $1,200 cash, partial payment for the services provided on May 22
	26		Paid $1,000 cash, partial payment for the office equipment purchased on May 3
	27		Purchased $80 of advertising for May in the Grandview Herald and paid cash
	28		Paid $750 cash for an assistants salary for the second half of the month
	28		Provided $3,500 of consulting services - collected $1,000 cash, the balance on credit
	30		Paid $300 cash for this month’s telephone bill
	30		Paid $280 cash for this month’s utilities
	31		Alba withdrew $1,400 cash for personal use

Chart of Accounts:  

Cash	Accounts Payable*	Office Supplies Expense
Office Equipment	K. Alba, Capital	Cleaning Expense
Vehicle – Toyota Camry	K. Alba, Withdrawals	Telephone Expense
Accumulated Depreciation – Vehicle	Consulting Services Revenue	Utilities Expense
Office Supplies	Salaries Expense	Advertising Expense
Accounts Receivable*	Depreciation Expense	Income Summary
Prepaid Insurance	Insurance Expense
Prepaid Rent	Rent Expense

*For this exercise, post all transactions from customers to the account receivable ledger account; post all transactions on credit to the accounts payable account.

1.         Prepare journal entries for the above transactions for the month of May.

2.         Open general ledger accounts for the above accounts.

3.         Post the journal entries to the general ledger.

4.         Prepare an unadjusted trial balance.

5.         Do adjusting entries (rent, depreciation, insurance and office supplies) for the month of May. During the month of May, the business used $125 in Office Supplies

6.         Prepare an adjusted trial balance.

7.         Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the

Month of May.

8.         Do closing entries (revenue, expense to income summary, income summary and

withdrawals to owner’s equity).

9.         Prepare a post-closing trial balance.

Check Figures:

Ending Cash Balance                     $67,365

Unadjusted Trial Balance               $95,490

Adjusted Trial Balance                    $95,640

Net Income                                        $10,415

Posting Closing Trial Balance       $90,055

Answer 1

requirements 1 to 4 has been solved correctly.

Please give ratings appropriately.