1-May Issued common stock in exchange for cash $50,000
1-May Purchased a one-year insurance policy to beconsumed evenly over the next 12 months $4,800
1-May Prepaid the next 6 months of rent $3,600
1-May Purchased for cash a truck to be used in thebusiness $18,000
5-May Received prepayment of cash for a contracted jobto be performed in June $4,500
5-May Purchased Office Supplies on credit $1,200
10-May Billed customers for servicesprovided $8,600
12-May Paid advertising expense $1,300
23-May Paid salaries to employees $1,500
31-May Paid dividends to stockholders $1,000
Adjusting Entries: Recognize rent for month ofMay
Recognize insurance for month of May
Recognize Depreciation for on month
Truck has a 5 year useful life and a $3,000 salvageValue
An inventory count of office supplies at may 31 showed$500 of suppies on hand
Employees' salaries earned durning May but not to bepaid until June was $500
REQUIRED: Place in t-account form.
Cash
Accounts payable
Service Revenue
Unearned Revenue
Supplies Expense
Dividend Expense
Accounts Receivable
Truck
Accumplated Dep
Prepaid Insurance
Prepaid rent
Supplies
Salaries payable
Stock
Salaries Expense
Advertising Expense
Dep Exp
Insurance Exp
Rent Exp
REQUIRED: Prepare an income statement:
INCOME STATEMENT
Service Revenue
Expenses: Supplies Expense
Salary Expense
Rent Expense
Insurance Expense
Advertising Expense
Depreciation Expense
NET INCOME
STATEMENT OF RETAINED EARNINGS
Beg Bal Retained earnings $- 0
Plus Net Income
Less Dividends Paid
End bal Retained Earnings
REQUIRED: Prepare the balance sheet:
BALANCE SHEET
ASSETS
Current:
Cash
Acc Rec
Supplies
Prepaid Rent
Prepaid Insur
TOTAL CURRENT ASSETS
Truck
Accum Dep
TOTAL ASSETS
LIABILITIES
Acc. Payable
Unearned Revenue
Salary Payable
EQUITY
Stock
Retained Earnings
TOTAL LIAB. + EQUITY
1-May Issued common stock in exchange for cash $50,000
1-May Purchased a one-year insurance policy to beconsumed evenly over the next 12 months $4,800
1-May Prepaid the next 6 months of rent $3,600
1-May Purchased for cash a truck to be used in thebusiness $18,000
5-May Received prepayment of cash for a contracted jobto be performed in June $4,500
5-May Purchased Office Supplies on credit $1,200
10-May Billed customers for servicesprovided $8,600
12-May Paid advertising expense $1,300
23-May Paid salaries to employees $1,500
31-May Paid dividends to stockholders $1,000
Adjusting Entries: Recognize rent for month ofMay
Recognize insurance for month of May
Recognize Depreciation for on month
Truck has a 5 year useful life and a $3,000 salvageValue
An inventory count of office supplies at may 31 showed$500 of suppies on hand
Employees' salaries earned durning May but not to bepaid until June was $500
REQUIRED: Place in t-account form.
Cash
Accounts payable
Service Revenue
Unearned Revenue
Supplies Expense
Dividend Expense
Accounts Receivable
Truck
Accumplated Dep
Prepaid Insurance
Prepaid rent
Supplies
Salaries payable
Stock
Salaries Expense
Advertising Expense
Dep Exp
Insurance Exp
Rent Exp
REQUIRED: Prepare an income statement:
INCOME STATEMENT
Service Revenue
Expenses: Supplies Expense
Salary Expense
Rent Expense
Insurance Expense
Advertising Expense
Depreciation Expense
NET INCOME
STATEMENT OF RETAINED EARNINGS
Beg Bal Retained earnings $- 0
Plus Net Income
Less Dividends Paid
End bal Retained Earnings
REQUIRED: Prepare the balance sheet:
BALANCE SHEET
ASSETS
Current:
Cash
Acc Rec
Supplies
Prepaid Rent
Prepaid Insur
TOTAL CURRENT ASSETS
Truck
Accum Dep
TOTAL ASSETS
LIABILITIES
Acc. Payable
Unearned Revenue
Salary Payable
EQUITY
Stock
Retained Earnings
TOTAL LIAB. + EQUITY