Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Misty Mark, an infamous archer, decided to open an archery and fitness business called Bows and Biceps. The following is a list of transactions for
Misty Mark, an infamous archer, decided to open an archery and fitness business called Bows and Biceps. The following is a list of transactions for Bows and Biceps for the first month. Put the transactions in a T account ledger and then create a trial balance, Income Statement, Statement of Owners Equity, and Balance Sheet on 5/31/20.
- 5/1/2020 - Deposited $10,000 into a bank account in the name of the business.
- 5/1/2020 - Signed a one-year lease for a building and paid the first six months rent of $4,200.
- 5/2/2020 - Bought equipment from Archery Supply, Inc for $2,000.
- 5/10/2020 - Enrolled 10 students in a Bow Hunting for Beginners class to be held on 5/29. Each student paid $50 for the class
- 5/15/2020 - Misty gives her personal exercise equipment with a fair market value of $3,000 to the business.
- 5/25/2020 - Enrolled 10 students in a Fit to Shoot class to be held next month. Each student paid $25 for the class.
- 5/28/2020 - Purchased $500 in office supplies from Andys Office Supply on credit. Half of the supplies were used immediately, the other half was stored in the supply closet for future use.
- 5/31/2020 - Misty withdraws $1,000 to take a vacation after working so hard to set up the business.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started