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Jessi Paulis started a consulting firm, Paul's Consulting Ltd, on 1 May 2019. The following events occurred during the month of May: Events (1) Paulis

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Jessi Paulis started a consulting firm, Paul's Consulting Ltd, on 1 May 2019. The following events occurred during the month of May: Events (1) Paulis invested $8,000 cash in the business in exchange for shares. (2) Paid $800 for office rent for the month (3) Purchased $500 of supplies on account. (4) Paid $50 to advertise in the County News. (5) Received $3,000 cash for services performed (6) Declared a $700 cash dividend, payable in June. (7) Performed services worth $3,300 on account. (8) Paid $2,100 for employee salaries. (9) Paid for the supplies purchased in Event (3) (10) Received a cash payment of $2,000 for services performed on account in Event (7). (11) Borrowed $5,000 from the bank on a note payable. (12) Purchased office equipment for $2,300 on account. (13) Received a $150 water bill for the month of May, payable in June. Required: (a) Analyse the events for May, and complete the table below. The first event is shown. Afterwards, calculate the ending balances of the accounts to prove that the accounting equation balances. (b) Prepare a balance sheet in the ACCTG 102 form and format. The loan from the bank is due in December 2020. (c) Prepare residual analyses for events (6) and (13) a. Please submit this problem (problem lc only) as your online submission. (d) When a balance sheet is prepared at the end of the accounting period, the balances shown for assets and liabilities must be faithfully represented. If a balance sheet were prepared for Paulis Consulting Ltd on 31 May 2019, which ending balances shown in part a) are likely not faithful representations? Explain why. (Hint: Refer to the definitions of assets and liabilities in the Conceptual Framework.) Assets Liabilities Event Cash Accounts Receivable Supplies Equipment Accounts Dividends Loan Share Payable Payable Payable Capital +8,000 Equity Retained Earnings *Service Revenue Expenses Dividends 1 +8,000 2. 3 4 5 6 7 8 9 10 11 12 13 Totals

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