Debra Menge started her own consulting firm, Menge Consulting, on May 1, 2014. The following transactions occurred during the month of May.
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May |
1 |
Debra invested $7,000 cash in the business. |
|
2 |
Paid $900 for office rent for the month. |
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|
3 |
Purchased $600 of supplies on account. |
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|
5 |
Paid $125 to advertise in the County News. |
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|
9 |
Received $4,000 cash for services performed. |
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|
12 |
Withdrew $1,000 cash for personal use. |
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| ; |
15 |
Performed $5,400 of services on account. |
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17 |
Paid $2,500 for employee salaries. |
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|
20 |
Paid for the supplies purchased on account on May 3. |
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|
23 |
Received a cash payment of $4,000 for services performed on account on May 15. |
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|
26 |
Borrowed $5,000 from the bank on a note payable. |
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|
29 |
Purchased equipment for $4,200 on account. |
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|
30 |
Paid $275 for utilities. |
Instructions
(a) Show the effects of the previous transactions on the accounting equation.
(b) Prepare an income statement for the month of May.
(c) Prepare a balance sheet at May 31, 2014.