AP$-13$A LO $1345$

John Cheng Communications is a public relations firm. On April $30,2019,$ the firm had the following ending

balances.

Cash $$20,000$

Prepaid Rent $10,000$

Equipment $25,000$

Accounts Payable $8,000$

Capital $47,000$

During the month of May, the company completed the following transactions.

$1.$ Purchased $$800$ of office equipment on account

$2.$ Paid $$6,000$ to reduce the amount owing to a supplier

$3.$ Received $$5,000$ cash from customers for services rendered

$4.$ Paid May$$s utility bill with $$700$ cash

$5.$ Purchased a computer worth $$1,500$ on account

$6.$ Received a bill for $$1,000$ for advertisements during the month of May; the amount will be paid in July

$7.$ Paid May$$s salaries with $$1,900$ cash

$8.$ Owner withdrew $$3,000$ cash for personal use

$9.$ Recognized $$2,000$ rent for May $($which was prepaid$)$

$10.$ Received $$4,000$ cash in advance for a contract to be completed in three months

Prepare the T$-$account worksheet.

Note: The ending balances for the month of April are the opening balances for the month of May