Transactions:

5/1 Bill Taylor invested cash of $500 common stocks to start Taylor Contractors.

5/2 Taylor Contractors borrowed $5,000 from Bill's parents (signed a note).

5/5 Taylor Contractors purchased painting supplies, paying the $3000 purchase price in cash.

5/10. Taylor signed a contract whereby he agreed to paint three houses sometime during the next few weeks. The customer paid the fee of $1,100 per house in advance.

5/12. Taylor Contractors declared and paid dividends of $600.

5/15 Taylor Contractors repaid $2,000 of the $5,000 it borrowed from Taylor's parents.

5/17 Taylor Contractors painted a house for $700 cash.

5/19 Taylor Contractors painted a second house and billed (but did not collect) its fee of $900.

5/25 Taylor Contractors paid salaries of $1,500 to employees.

REQUIRED:

1. Record the transactions below in terms of the accounting equation and debits and credits.
2. Post the journal entries to the General Ledger accounts.
3. Enter the balance from the General Ledger accounts to the Unadjusted Trial Balance. (Use the ending balances in the General Ledger.)
4. Record the adjusting journal entries.
5. Post the Adjusting Entries to the General Ledger.
6. Prepare the Adjusted Trial Balance (use ending balances in the General Ledger)
7. Prepare/record the Financial Statements.
8. Record the closing entries by zeroing out the Revenues, Expense, and Dividends accounts. Make the offsetting debit or credit to the Income Summary. Then, close the Income Summary to Retained Earnings.
9. Post the closing entries to the General Ledger.
10. Prepare the Post Closing Trial Balance.

Transactions: 5/1 Bill Taylor invested cash of $500 common stock to start Taylor Contractors. 5/2 Taylor Contractors borrowed $5,000 from Bill's parents (signed a note). 5/5 Taylor Contractors purchased painting supplies, paying the $3000 purchase price in cash. 5/10. Taylor signed a contract whereby he agreed to paint three houses sometime during the next few weeks. The customer paid the fee of $1,100 per house in advance. 5/12. Taylor Contractors declared and paid dividends of $600. 5/15 Taylor Contractors repaid $2,000 of the $5,000 it borrowed from Taylor's parents. 5/17 Taylor Contractors painted a house for $700 cash. 5/19 Taylor Contractors painted a second house and billed (but did not collect) its fee of $900. 5/25 Taylor Contractors paid salaries of $1,500 to employees. Assets_ Liabilities + Equity Account Dr (A.-L.-E) Cr(-A,+L+E) 5/1 5/2 5/5 5/10 5/12 5/15 5/17 5/19 5/25 Taylor Contractors Til Balan Bafors Aditment Taylor Contractors Trial Balance Before Adjustment May 31, 2020 Credits Debits Gen. Ledger Accounts Cash A/R Supplies Notes Payable Unearned Revenues Common Stock Dividends Painting Revenues Salaries Exp. Total May 31. Taylor Contractors painted one of the three houses contracted for on May 10. Assets - Liabilities + Equity Account Dr (+A.-L.-E) C (-A+L.+E) May 31. The unused painting supplies on hand at this date had an original cost of $2,000. Assets - Liabilities Equity Account DP (+A-L-E) Cr (-A,+L+E) Make sure to post the entries to the General Ledger. Taylor Contractors Trial Balance After Adjustment May 31, 2020 Credits Debits Accounts Cash A/R Supplies Notes Payable Unearned Revenues Common Stock Dividends Painting Revenues Salaries Expense Supplies Expense Total 1 1 INCOME STATEMENT For the Month Ending May 31, 2020 Revenues - Expenses: -Salaries Expense -Supplies Expense =Net Income STATEMENT OF CHANGES IN RETAINED EARNING For the Month Ending May 31, 2020 0 Beg. Retained Earnings + Net Income - Dividends End. Retained Earnings BALANCE SHEET As of May 31, 2020 Assets: Cash +A/R +Supplies =Total Liabilities & Equity: Notes Payable +Unearned Revenues + Common Stock +End. Retained Earnings -Total Closing Entries 1. Close the Revenue Account. Assets Liabilities Equity Account Dr Cr 2. Close the Expense Accounts. Liabilities Assets Equity Account Dr Cr 3. 3. Close the Dividends Account. Liabilities Assets Equity Account Dr Cr 4. Close the Income Summary to Retained Earnings Assets - Liabilities Equity Account Dr Cr Taylor Contractors Post-Closing Trial Balance May 31, 2020 Debits Credits Accounts Cash A/R Supplies Notes Payable Unearned Revenues Common Stock Retained Earnings Total - General Ledger (D) Cash (C) (D) (C) A/R I (D) Supplies (C) (D) Notes Payable(C) (D) Unearned Revenues C) (D) Common Stock (C) (D) Dividends (C) (D) Painting Revenues (C) (D) Painting Revenues C) (D) Supplies Exp. (C) (D. Salaries Exp. (D) Retained Earnings (C) (D) Income Summary (C)