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On May 1, Huck, Inc. was established. The following transactions were completed during the month: 1. Shareholders invested $40,000 cash in the company in exchange

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On May 1, Huck, Inc. was established. The following transactions were completed during the month: 1. Shareholders invested $40,000 cash in the company in exchange for common stock. 2. Borrowed $15,000 cash from their bank, payable in 6 months. 3. Paid $900 cash for May office rent. 4. Purchased office equipment for $4,300 cash. 5. Purchased $250 of advertising in the newspaper, on account. 6. Paid $500 cash for office supplies. 7. Performed services worth $14,000. Cash of $3,000 is received from customers, and the balance of $11,000 is billed to customers on account. 8. Paid $500 cash dividend. 9. Pald employees' salaries $2,000. 10. Received 57,000 in cash from customers billed previously transaction (7). Required: a. Journalize the above transactions. b. Post the journal entries to the general ledger using T-Accounts. c. Prepare an Income Statement, Statement of Shareholders' Equity, and Balance Sheet for May 31. Debit Credit Accounts 1 2 3 4 5 6 7 8 9 10 Equipment Notes Payable Supplies Cash Accounts Receivable Revenue Accounts Payable Retained Earnings Salaries Expense Common Stock Dividends Rent Expense Advertising Expense Huck, Inc. Income Statement For the Year Ended May 31 I Service revenue Salaries expense.... Rent expense.. Advertising expense. Net income... Huck, Inc. Statement of Retained Earnings For the Year Ended May 31 $ Beginning balance, May 1 Net income 1 Dividends Ending balance, May 31 Huck, Inc. Balance Sheet As of May 31 Assets Liabilities and Shareholders' Equity Cash $....... Accounts receivable Notes payable Accounts Payable ..... Common stock ........ Supplies Huck, Inc. Balance Sheet As of May 31 Assets Liabilities and Shareholders' Equity Cash $.... Notes payable .$ Accounts Payable .......... Common stock...... Accounts receivable ... .... Supplies Office Equipment Retained earnings............. Total liabilities and shareholders' equity ..... Total assets ***********

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