Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. After several months of planning, Denise Murphy started a property management business for the for the properties that its owners invest called Vertex Property

2. After several months of planning, Denise Murphy started a property management business for

the for the properties that its owners invest called Vertex Property Management (VPM). The

following events occurred during its first month:

a. On May 1, Murphy started the firm, investing $3,000 cash and $15,000 of equipment.

b. On May 2, VPM paid $600 cash for furniture for the office.

c. On May 3, VPM paid $500 cash to rent commercial space for May.

d. On May 4, VPM purchased $1,200 of equipment on credit for its maintenance shop

(using a long-term note payable).

e. On May 5, VPM opened for business. Cash received from services provided in the first week

and a half of business (ended May 15) is $825.

f. On May 15, it provided $100 of property management services on account (invoiced).

g. On May 17, it received a $100 check for services previously rendered on account.

h. On May 17, it paid $125 to an assistant for work during the store opening.

i. Cash received from services provided during the second half of May is $930.

j. On May 31, it paid an $400 installment toward principal on the note payable entered into

on May 4

.k. On May 31, it paid $900 cash dividends to Murphy.

  1. Create a General Journal
  2. Post the General Journal entries to their appropriate accounts
  3. .Prepare a Trial Balance
  4. Prepare a simplified balance sheet, income statement and statement of cash flows from the Trial Balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

324300980, 978-0324300987

More Books

Students also viewed these Accounting questions