$1-$May Sell $50,000$ shares of common stock for $$50,000$ to obtain the funds necessary to start your business.

$21-$May Borrow $$20,000$ from the local bank and sign a note promising to repay the full amount of the debt in $5$ years.

$31-$May Pay one year of rent in advance with cash, $$12,000($$$1,000$ per month.$)$

$41-$May Purchase equipment necessary for business operations for $$15,000$ with cash.

$53-$May Purchase $200$ units of inventory $($$$20/$unit$)$ with cash.

$63-$May Purchase supplies with cash, $$1000.$

$76-$May Provide $40$ hours of services to customers for cash with $$50/$hour service rate.

$810-$May Sell $100$ units of inventory on account with selling price of $$30/$unit$.$

$923-$May Receive cash in advance for $20$ hours of services to be completed in the future. Service rate is $$50/$hour$.$

$1031-$May Pay employee salaries $$1,000$ with cash.

$1131-$May Pay cash dividends to shareholders, $$600.$

Part $2$ cont. $$ Adjusting journal Entries $$ Post the following adjusting entries to the general journal

Adj$-131-$May Record the portion of the Prepaid Rent used in May.

Adj$-231-$May The company has $$300$ of supplies left at month end.

Adj$-331-$May Record one month of depreciation on the equipment. The equipment has a useful life of $10$ years

Adj$-431-$May Provide $10$ hours of services that were paid in advance on May $23$rd$.$ Service rate is $$50/$hour$.$

Part $1$ cont. $-$ Add the following closing entries to the general journal :

Clo$-11-$Jun Close out revenues$/$income

Clo$-21-$Jun Close out expenses$/$losses

Clo$-31-$Jun Close out dividends

Part $2$ cont. $-$ Post the above closing entries to the general ledger $.$

Part $3$ Income statement

Part $4$ Retained earnings

Part $5$ Balance Sheet

Part $6$ Cash Flow statement