& Collected dAccrund intenest ex & Made cash sales, 58 Detemine wheter cach ansaction imres E3-40 (Larminr Oectives 45 Adjust the accounts; construct the finanelat state ment close the books analyce and enaluate liguidiry and debt-paying ability) Refer to Exercise 2-37 of Chapter 2 Start from the trial balance and the posted T-accounts that Oi Matthews, Certified Public Accountant, Professional Corporation (P.C.), prepared for het Esencise 3-40 continues the Olivia Mathewsx, Certified Public Accountant, Protessional Serial Exercise accounting practice at May 18, 2018. A professional corporation is not subject t Later in May, the business completed these transactions: Corporation (PC situation begun in Esercise 2-37 of Chapter 2. LO 3,4,8.6 income ta Received $2,400 in advance for tax work to be performed over Hired an assistant to be paid on the 15th day of each month. May 21 Paid $900 for the supplies parchased on May 5, 26 Collected $3,100 from the client on May 18 28 Declared and paid dividends of 51,200. the next 30 days 22 31 Requirements 1. Journalize the transactions of May 21 through 31. 2. Post the May 21 to 31 transactions to the T-accounts, keying all items by date. 3. Prepare an Excel spreadsheet showing the unadjusted trial balance at May 31. Set up the worksheet to prepare the adjusted trial balance as seen in Exhibit 3-9 on page 138, 4. At May 31, Matthews gathers the following information for the adjusting entries a. Accrued service revenue, $2,000. b. Earmed $800 of the service revenue collected in advance on May 21, c. Supplies on hand, $300. d. Depreciation expense equipment, $30; furniture, $100. e. Accrued expense for assistant's salary, $900. Refer to the Excel spreadsheet you prepared in Requirement 3. Make these adjustments in the adjustments columns and complete the adjusted trial balance at May 31 5. Journalize and post the adjusting entries. Denote each adjusting amount as Adj and an account balance as Bal. 6. Prepare the single-step income statement and statement of retained earnings of Olivia Matthews, Certified Public Accountant, P.C., for the month ended May 31 and the classified balance sheet at that date. 7. Journalize and post the closing entries at May 31. Denote each closing amount as Clo and 8. Calculate the net working capital, current ratio, and the debt ratio of Olivia Matthews, Certi Public Accountant, P.C., and determine if they indicate a strong or weak financial position an account balance as Bal. & Collected dAccrund intenest ex & Made cash sales, 58 Detemine wheter cach ansaction imres E3-40 (Larminr Oectives 45 Adjust the accounts; construct the finanelat state ment close the books analyce and enaluate liguidiry and debt-paying ability) Refer to Exercise 2-37 of Chapter 2 Start from the trial balance and the posted T-accounts that Oi Matthews, Certified Public Accountant, Professional Corporation (P.C.), prepared for het Esencise 3-40 continues the Olivia Mathewsx, Certified Public Accountant, Protessional Serial Exercise accounting practice at May 18, 2018. A professional corporation is not subject t Later in May, the business completed these transactions: Corporation (PC situation begun in Esercise 2-37 of Chapter 2. LO 3,4,8.6 income ta Received $2,400 in advance for tax work to be performed over Hired an assistant to be paid on the 15th day of each month. May 21 Paid $900 for the supplies parchased on May 5, 26 Collected $3,100 from the client on May 18 28 Declared and paid dividends of 51,200. the next 30 days 22 31 Requirements 1. Journalize the transactions of May 21 through 31. 2. Post the May 21 to 31 transactions to the T-accounts, keying all items by date. 3. Prepare an Excel spreadsheet showing the unadjusted trial balance at May 31. Set up the worksheet to prepare the adjusted trial balance as seen in Exhibit 3-9 on page 138, 4. At May 31, Matthews gathers the following information for the adjusting entries a. Accrued service revenue, $2,000. b. Earmed $800 of the service revenue collected in advance on May 21, c. Supplies on hand, $300. d. Depreciation expense equipment, $30; furniture, $100. e. Accrued expense for assistant's salary, $900. Refer to the Excel spreadsheet you prepared in Requirement 3. Make these adjustments in the adjustments columns and complete the adjusted trial balance at May 31 5. Journalize and post the adjusting entries. Denote each adjusting amount as Adj and an account balance as Bal. 6. Prepare the single-step income statement and statement of retained earnings of Olivia Matthews, Certified Public Accountant, P.C., for the month ended May 31 and the classified balance sheet at that date. 7. Journalize and post the closing entries at May 31. Denote each closing amount as Clo and 8. Calculate the net working capital, current ratio, and the debt ratio of Olivia Matthews, Certi Public Accountant, P.C., and determine if they indicate a strong or weak financial position an account balance as Bal