Transaction No.	Transaction Date	Description
1.	May 1	I invested $30,000 cash into my new business
2.	May 3	I Purchased coffee machine worth $8000 cash
3.	May 5	Insurance Paid $1000 in cash
4.	May 6	Advertisement expense $500 paid in cash
5.	May 9	Purchased Brewer worth $6000 in cash
6.	May 12	Loan Taken $5000 from friend in cash
7.	May 14	Repair expense $400 paid in cash
8.	May 18	Salaries expense $2500 paid in cash
9.	May 20	Purchased Smoothie Blender worth $5000 in cash
10.	May 23	Accounts Receivable $7200
11.	May 26	Drawings $1500
12.	May 30	Rent paid $1200

As an employee of Kontur and Associates, you have been asked to compile the information requested by the client. Based on the information provided in the email complete the following information for Ms. Konturs.

1. Enter the journal entries to record all of the business activity for the month of May.
2. Compile a trial balance from the journal entries.
3. Prepare the income statement, statement of changes in equity, and balance sheet for your client.
4. Prepare an email to Ms. Kontur to submit with the file. Discuss the following:
   • As you are very ambitious and want to demonstrate your analytical skills, provide your insight on the financial performance of your clients first month of business.
   • After completing the financial statements, the client sent another email to you (see Appendix A). Explain to Ms. Kontur how this new information would change the financial statements you already prepared.

Appendix A

Dear Bookkeeper, I understand you are working on my financial statements. I forgot to mention the following information in my initial email. In May I hired a cost consultant to help me find cost savings for my business. She has already done a great job, finding me tons of cost savings! However, she will not send me her final invoice until next month. She charges 5% of monthly revenues for her services. She is worth every penny! I also forgot to mention that I made a cash payment on May 30th for my annual liability insurance. My annual insurance is equal to 10% of my estimated annual operating expenses. Food is risky business!! I hope the above information will not change my financial information for May. Please advise.

Thank you!

Your Client