Exercise 2: All opened an auditing office, the balance sheet on May 1, 2016 showed cash $10,000, accounts receivable $2,000, supplies $1,000, equipment $2,000, account Payable $4000, Ali capital $11000. During the month of May the following Transactions occurred: 1. Paid $2500 cash for office rent. 2. Receive cash fees $6000. 3. Collect receivables $1500. 4. Salaries $1,000 not paid. 5. withdraw $500 for personal use 6. Paid $3,000 on accounts payable. 7. Purchase a computer $1500 on account. Instructions: a) Prepare a tabular analysis of the month of May transaction beginning with May 1 balance sheet use the following column headings: Cash + Accounts Receivable + Supplies + Equipment Account Payable + Ali Capital. b) Prepare the financial statements Answer Exercise 2: Ali opened an auditing office, the balance sheet on May 1, 2016 showed cash $10,000, accounts receivable $2,000, supplies $1,000, equipment $2,000, account Payable $4000, Ali capital $11000. During the month of May the following Transactions occurred: 1. Paid $2500 cash for office rent. 2. Receive cash fees $6000. 3. Collect receivables $1500. 4. Salaries $1,000 not paid. 5. withdraw $500 for personal use 6. Paid $3,000 on accounts payable. 7. Purchase a computer $1500 on account. Instructions: a) Prepare a tabular analysis of the month of May transaction beginning with May 1 balance sheet, use the following column headings: Cash + Accounts Receivable + Supplies + Equipment Account Payable +Ali Capital. b) Prepare the financial statements