P1-4A

Debra Menge started her own consulting firm, Menge Consulting, on May 1, 2014. The following transactions occurred during the month of May: May 1st Debra invested $7000 cash in the business May 2nd Paid $900 for office rent for the month May 3rd Purchased $600 of supplies on the account May 5th Paid $125 to advertise in the County News May 9th Received $4000 cash for services performed May 12th Withdrew $1000 cash for personal use May 15th Performed $5400 of services on account May 17th Paid $2500 for employee salaries May 20th Paid for the supplies purchased on account on May 3rd May 23rd Received a cash payment of $4000 for services performed on account on May 15th May 26th Borrowed $5000 from the bank on a note payable May 29th Purchased equipment for $4200 on account May 30th Paid $275 in utilities

(B) Prepare an income statement for the month of May.

Hint: net income is $5,600

(C) Prepare a balance sheet at May 31, 2014.

Hint: Cash is $14,600