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:

On $\frac{5}{1},$ he invested $$350,000\mathrm{.}00$ of his own funds to form

Redemption Services, LLC$.$ He also borrows $$100,000\mathrm{.}00$ from

Chase Bank and he deposits the cash into the business. He deposit:

all of the funds into the First Redemption Bank.

On $\frac{5}{1},$ he paid $$9,600\mathrm{.}00$ for insurance for $12$ months.

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\mathrm{.}00.$ In addition, it costs $ 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:

On $\frac{5}{1},$ he invested $$350,000\mathrm{.}00$ of his own funds to form

Redemption Services, LLC$.$ He also borrows $$100,000\mathrm{.}00$ from

Chase Bank and he deposits the cash into the business. He deposit:

all of the funds into the First Redemption Bank.

On $\frac{5}{1},$ he paid $$9,600\mathrm{.}00$ for insurance for $12$ months.

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

$$3,000\mathrm{.}00.$ In addition, it costs $$500\mathrm{.}00$ per month for the

monitoring service.

On $\frac{5}{2},$ he paid $$3,000\mathrm{.}00$ for rent for the month.

On $\frac{5}{3},$ he paid $$1,500\mathrm{.}00$ for dog and cat food.

On $\frac{5}{5},$ he bought $$2,450\mathrm{.}00$ of pet supplies on Account.

On $5/10,$ he transfers $$75,000\mathrm{.}00$ to Pope Francis Bank.

On $\frac{5}{12},$ he transfers $$1,000\mathrm{.}00$ to form a petty cash

account.

On $\frac{5}{14},$ he paid out $$2,500\mathrm{.}00$ in wages to his employees.

Employees are paid every two weeks.

On $5/15,$ his grand opening produced cash fees and

contributions totaling $$7,500\mathrm{.}00$ for professional services. In

addition, he has sales of $$2,500\mathrm{.}00$ placed with customer's Visa

accounts. He will not collect payment from Visa for $15$ days.On May $19,$ he bought $$3,800\mathrm{.}00$ of pet supplies on

Account, and he bought $$1,000\mathrm{.}00$ of supplies that he decides to

expense.

On $5/20,$ he held a pet sale. The cash register daily

receipt totaled $$2,600\mathrm{.}00,$ but the cash received was $$2,800\mathrm{.}00.$

On $5/22,$ he purchases the building for $$300,000\mathrm{.}00.$ He

borrows $$240,000\mathrm{.}00$ from First Redemption Bank and uses

$$60,000\mathrm{.}00$ of company cash. The building has a useful life of $20$

years with salvage value of $$60,000\mathrm{.}00.$

On $\frac{5}{23},$ he borrows $$5,000\mathrm{.}00$ in cash from his

MasterCard Account for additional capital.

On $\frac{5}{28},$ he paid out $$2,500\mathrm{.}00$ in wages to his employees.

On $\frac{5}{29},$ he holds a pet training class and receives

professional fees of $$2,000\mathrm{.}00,$$$1,500\mathrm{.}00$ in cash, with the

remaining being billed.

On $\frac{5}{30},$ he took an inventory of his pet food and

supplies. The total of supplies remaining was $$2,250\mathrm{.}00$

On $\frac{5}{30},$ he buys pizza for his employees for $$750\mathrm{.}00$

taken from petty cash.

On $\frac{5}{30},$ he pays himself a salary of $$2,000\mathrm{.}00.$

On $\frac{5}{30},$ he receives $$500\mathrm{.}00$ from Visa.

On $\frac{5}{31},$ he makes a cash donation of $$2,000\mathrm{.}00$ to the

First Redemption Church.

On $\frac{5}{31},$ he receives $$250\mathrm{.}00$ for fees previously billed.

Perform the following tasks for the month of May:

Journalize each transaction.

Prepare $T-$Accounts for each Account.

Make all adjusting entries.

Prepare an Income Statement.

Prepare a Statement of Owners Equity.

Prepare a Balance Sheet.