Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maisie Taft started her own consulting fi rm, Maisie Consult- ing, on May 1, 2020. The following transactions occurred during the month of May. May

Maisie Taft started her own consulting fi rm, Maisie Consult- ing, on May 1, 2020. The following transactions occurred during the month of May.

May 1 Maisie invested $7,000 cash in the business. 2 Paid $900 for offi ce rent for the month. 3 Purchased $800 of supplies on account. 5 Paid $125 to advertise in the County News. 9 Received $4,000 cash for services performed. 12 Withdrew $1,000 cash for personal use. 15 Performed $6,400 of services on account. 17 Paid $2,500 for employee salaries. 20 Made a partial payment of $600 for the supplies purchased on account on May 3. 23 Received a cash payment of $4,000 for services performed on account on May 15. 26 Borrowed $5,000 from the bank on a note payable. 29 Purchased equipment for $4,200 on account. 30 Paid $275 for utilities. Instructions a. Show the eff ects of the previous transactions on the accounting equation using the following format.

Assets Liabilities Owners Equity Accounts Notes Accounts Owners Owners Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital Drawings + Revenues Expenses b. Prepare an income statement for the month of May. c. Prepare a balance sheet at May 31, 2020.

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

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions

Question

Which other character brings out a particular part? And why?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago