Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2022. The following transactions occurred during the month of May.
May 1 Trixie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.

Instructions

a. Prepare a tabular summary of the May transactions. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner’s Capital – Owner’s Drawings + Revenues – Expenses.

b. Compute total revenues and total expenses for May.

c. Compute the balance of assets, liabilities, and owner’s equity at May 31.