Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2025. The following transactions occurred during the month of May.

May 1 Stockholders invested \(\$ 15,000\) cash in the business in exchange for common stock.

2 Paid \(\$ 600\) for office rent for the month.

3 Purchased \(\$ 500\) of supplies on account.

5 Paid \(\$ 150\) to advertise in the County News.

9 Received \(\$ 1,400\) cash for services performed.

12 Paid \(\$ 200\) cash dividend.

15 Performed \(\$ 4,200\) of services on account.

17 Paid \(\$ 2,500\) for employee salaries.

20 Paid for the supplies purchased on account on May 3.

23 Received a cash payment of \(\$ 1,200\) for services performed on account on May 15.

26 Borrowed \(\$ 5,000\) from the bank on a note payable.

29 Purchased office equipment for \(\$ 2,000\) paying \(\$ 200\) in cash and the balance on account.

30 Paid \(\$ 180\) for utilities.

Instructions

a. Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.

Include margin explanations for revenues and expenses.

b.  Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet.

b. Prepare an income statement for the month of May 2025.

c. Prepare a classified balance sheet at May \(31,2025\).

Transcribed Image Text:

Assets Accounts Date Cash+ Receivable + Supplies +Equipment = Liabilities Notes Payable Stockholders' Equity Accounts Common Payable + Retained Earnings Stock + Revenues - Expenses - Dividends