Question
1-May Issued common stock in exchange for cash $50,000 1-May Purchased a one-year insurance policy to be consumed evenly over the next 12 months $4,800
1-May Issued common stock in exchange for cash $50,000 1-May Purchased a one-year insurance policy to be consumed evenly over the next 12 months $4,800 1-May Prepaid the next 6 months of rent $3,600 1-May Purchased for cash a truck to be used in the business $18,000 5-May Received prepayment of cash for a contracted job to be performed in June $4,500 5-May Purchased Office Supplies on credit $1,200 10-May Billed customers for services provided $8,600 12-May Paid advertising expense $1,300 23-May Paid salaries to employees $1,500 31-May Paid dividends to stockholders $1,000 Adjusting Entries: Recognize rent for month of May Recognize insurance for month of May Recognize Depreciation for on month Truck has a 5 year useful life and a $3,000 salvage Value An inventory count of office supplies at may 31 showed $500 of suppies on hand Employees' salaries earned durning May but not to be paid until June was $500
REQUIRED: Place in t-account form.
Cash
Accounts payable
Service Revenue
Unearned Revenue
Supplies Expense
Dividend Expense
Accounts Receivable
Truck
Accumplated Dep
Prepaid Insurance
Prepaid rent
Supplies
Salaries payable
Stock
Salaries Expense
Advertising Expense
Dep Exp
Insurance Exp
Rent Exp
REQUIRED: Prepare an income statement:
INCOME STATEMENT Service Revenue Expenses: Supplies Expense Salary Expense Rent Expense Insurance Expense Advertising Expense Depreciation Expense NET INCOME STATEMENT OF RETAINED EARNINGS Beg Bal Retained earnings $- 0 Plus Net Income Less Dividends Paid End bal Retained Earnings
REQUIRED: Prepare the balance sheet:
BALANCE SHEET ASSETS Current: Cash Acc Rec Supplies Prepaid Rent Prepaid Insur TOTAL CURRENT ASSETS Truck Accum Dep TOTAL ASSETS LIABILITIES Acc. Payable Unearned Revenue Salary Payable EQUITY Stock Retained Earnings TOTAL LIAB. + EQUITY
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