Help with Comprehensive Problem 1 ( For the Month of May)

EXHIBIT Cycle 240 Accounting Cyele Steps Trat Balance tions nd teps in enteies are journalieed and posted to the ledier 1 An odjusted tral balanoe is prepad $ Finsancink stosements are prepared g ckosing entres are journalzed and posted to se age 10 A post-closing tra bolanow in prepaed Francout Siatement Eshibit 8 illustrates the accounting cycle in graphic forn. It also illustrates how the accounting cycle begins with the source documents for a transaction and nows through the accounting system and into t Illustration of the Accounting Cycle A Wstrate the in this section, the complete accounting cycle for one period is illustrated. Assume that ycle for one perled for several years Kelly Pitney has operated a part-time consulting business from her home. As of April 1, 2012, Kelly decided to move to rented quarters and to operate the business on a full-time basis. The business will be known as Kelly Consulting During April, Kelly Consulting entered into the following transactions Apr. 1. The following assets were received from Kelly Pitney cash, $13,100, accounts receivable, $3,000; supplies, $1,400; and office equipment, $12,500. There were no liabilities received. I. Paid three months rent on a lease rental contract. $4,800 2 Paid the premiums on property and casualty insurance policies, $1.80. 1. Received cish from clients as an advince payment for services to be prowided and recorded it as unearned fees, $5.000