Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DDIO OU OULULLS Mr. Madoff decides to form an animal shelter for dogs and cats. On May 1, (the Happiest day in my mom's life),

image text in transcribed
image text in transcribed
DDIO OU OULULLS Mr. Madoff decides to form an animal shelter for dogs and cats. On May 1, (the Happiest day in my mom's life), he made the following transactions: 1. On 5/1, he invested $350,000.00 of his own funds to form Redemption Services, LLC. He also borrows $100,000.00 from Chase Bank and he deposits the cash into the business. He deposits all of the funds into the First Redemption Bank. 2. On 5/1, he paid $9,600.00 for insurance for 12 months. 3. On 5/1, he paid $21,000 for a security system on Account. The equipment has a 3 year useful life and a salvage value of $3,000.00. In addition, it costs $500.00 per month for the monitoring service. 4. On 5/2, he paid $3,000.00 for rent for the month. 5. On 5/3, he paid $1,500.00 for dog and cat food. 6. On 5/5, he bought $2,450.00 of pet supplies on Account. 7. On 5/10, he transfers $75,000.00 to Pope Francis Bank. 8. On 5/12, he transfers $1,000.00 to form a petty cash account. 9. On 5/14, he paid out $2,500.00 in wages to his employees. Employees are paid every two weeks. 10. On 5/15, his grand opening produced cash fees and contributions totaling $7,500.00 for professional services. In addition, he has sales of $2,500.00 placed with customer's Visa accounts. He will not collect payment from Visa for 15 days. 11. On May 19, he bought $3,800.00 of pet supplies on Account and he bought $1,000.00 of supplies that he decides to expense. 12. On 5/20, he held a pet sale. The cash register daily receipt totaled $2,600.00, but the cash received was $2,800.00. 13. On 5/22, he purchases the building for $300,000.00. He borrows $240,000.00 from First Redemption Bank and uses $60,000.00 of company cash. The building has a useful life of 20 years with salvage value of $60,000.00. 14. On 5/23, he borrowers $5,000.00 in cash from his MasterCard Account for additional capital. 15. On 5/28, he paid out $2,500.00 in wages to his employees. 16. On 5/29, he holds a pet training class and receives professional fees of $2,000.00, $1,500.00 in cash, with the remaining being billed. 17. On 5/30, he took an inventory of his pet food and supplies. The total of supplies remaining was $2,250.00 18. On 5/30, he buys pizza for his employees for $750.00 taken from petty cash. 19. On 5/30, he pays himself a salary of $2,000.00. 20. On 5/30, he receives $500.00 from Visa. 21. On 5/31, he makes a cash donation of $2,obo.to the First Redemption Church. 22. On 5/31, he receives $250.00 for fees previously billed. Perform the following tasks for the month of May: 1) Journalize each transaction. 2) Prepare T-Accounts for each Account. 3) Make all adjusting entries. 4) Prepare an Income Statement. 5) Prepare a Statement of Owners Equity. 6) Prepare a Balance Sheet. DDIO OU OULULLS Mr. Madoff decides to form an animal shelter for dogs and cats. On May 1, (the Happiest day in my mom's life), he made the following transactions: 1. On 5/1, he invested $350,000.00 of his own funds to form Redemption Services, LLC. He also borrows $100,000.00 from Chase Bank and he deposits the cash into the business. He deposits all of the funds into the First Redemption Bank. 2. On 5/1, he paid $9,600.00 for insurance for 12 months. 3. On 5/1, he paid $21,000 for a security system on Account. The equipment has a 3 year useful life and a salvage value of $3,000.00. In addition, it costs $500.00 per month for the monitoring service. 4. On 5/2, he paid $3,000.00 for rent for the month. 5. On 5/3, he paid $1,500.00 for dog and cat food. 6. On 5/5, he bought $2,450.00 of pet supplies on Account. 7. On 5/10, he transfers $75,000.00 to Pope Francis Bank. 8. On 5/12, he transfers $1,000.00 to form a petty cash account. 9. On 5/14, he paid out $2,500.00 in wages to his employees. Employees are paid every two weeks. 10. On 5/15, his grand opening produced cash fees and contributions totaling $7,500.00 for professional services. In addition, he has sales of $2,500.00 placed with customer's Visa accounts. He will not collect payment from Visa for 15 days. 11. On May 19, he bought $3,800.00 of pet supplies on Account and he bought $1,000.00 of supplies that he decides to expense. 12. On 5/20, he held a pet sale. The cash register daily receipt totaled $2,600.00, but the cash received was $2,800.00. 13. On 5/22, he purchases the building for $300,000.00. He borrows $240,000.00 from First Redemption Bank and uses $60,000.00 of company cash. The building has a useful life of 20 years with salvage value of $60,000.00. 14. On 5/23, he borrowers $5,000.00 in cash from his MasterCard Account for additional capital. 15. On 5/28, he paid out $2,500.00 in wages to his employees. 16. On 5/29, he holds a pet training class and receives professional fees of $2,000.00, $1,500.00 in cash, with the remaining being billed. 17. On 5/30, he took an inventory of his pet food and supplies. The total of supplies remaining was $2,250.00 18. On 5/30, he buys pizza for his employees for $750.00 taken from petty cash. 19. On 5/30, he pays himself a salary of $2,000.00. 20. On 5/30, he receives $500.00 from Visa. 21. On 5/31, he makes a cash donation of $2,obo.to the First Redemption Church. 22. On 5/31, he receives $250.00 for fees previously billed. Perform the following tasks for the month of May: 1) Journalize each transaction. 2) Prepare T-Accounts for each Account. 3) Make all adjusting entries. 4) Prepare an Income Statement. 5) Prepare a Statement of Owners Equity. 6) Prepare a Balance Sheet

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

Audit Sampling An Introduction

Authors: Dan M. Guy, D. R. Carmichael, O. Ray Whittington

5th Edition

047137590X, 978-0471375906

More Books

Students also viewed these Accounting questions

Question

How does wetness affect the resistance of your body?

Answered: 1 week ago

Question

Perform an Internet search. Discuss a company that uses EPLI.

Answered: 1 week ago

Question

How do you feel about employment-at-will policies? Are they fair?

Answered: 1 week ago