$1.$ 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 and make sure to balance the trial balance.

$3.$ Prepare the income statement.

$4.$ Prepare statement of changes in equity.

$5.$ Prepare balance sheet and make sure to balance the balance sheet.

Given:

$1.$

May $1$

I invested $$120,000$ cash into my new business.

$2.$

May $3$

I purchased printing machinery $$5,000$ on cash

$3.$

May $6$

Inventories purchased $$7,000$ on cash

$4.$

May $10$

Paid $$10,000$ cash for delivery car

$5.$

May $15$

Cash $$12,000$ paid for employees salary

$6.$

May $20$

Advertisement expenses paid in cash $$5,000$

$7.$

May $21$

Loan received $$10,000$

$8.$

May $25$

Cash $$700$ paid for purchase of billing software

$9.$

May $26$

Rent paid in cash $$5,000$

$10.$

May $27$

Advance cash $$500$ paid for insurance

$11.$

May $28$

Cash $$900$ paid for utility bills

$12.$

May $31$

Interest paid on loan in cash $$200$

$13.$

May $31$

Cash $$1,000$ paid towards principal amount of loan

Answer rating: 100% (QA)

To address the requirements listed we will follow the steps provided 1 Journal Entries for the month of May May 1 Dr Cash 120000 Cr Owners Equity 1200... View the full answer