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P 2 . 6 A ( L O 2 , 3 , 4 AP Abramson Financial Services was formed on May 1 , 2 0
PA AP Abramson Financial Services was formed on May The following events and transactions are from its first month:
May Jacob Abramson invested $ cash and equipment worth $ in the company.
Hired one employee to work in the office for a salary of $ per month.
Paid $ cash for a oneyear insurance policy.
Signed a twoyear rental agreement on an office and paid $ cash. Half was for the May rent and the other half was for the final month's rent. Hint: The payment for the final month's rent should be considered an asset and be recorded in Prepaid Rent.
Purchased additional equipment costing $ A cash payment of $ was made immediately. Signed a note payable for the balance.
Purchased supplies for $ cash.
Purchased more supplies for $ on account.
Completed a contract for a client for $n nn arrnimt
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