Bill Smith opened Smith Construction on April 1, 2010. The following amounts summarize the transactions and financial position of Smith construction as of May 31.

During May the following transactions occurred:

1-May Smith received $10,000 as an inheritance and used it to buy stock in the company. 7-May Smith paid his accounts payable balance. 15-May Smith replaced some windows for a client and received $5,000 cash for his services 17-May Smith collected $1,200 from a customer for a job performed in April 20-May Smith purchased supplies for $1,000 on account 24-May Smith gave a bid to a customer and billed the customer for the services performed $800 25-May Smith sold $5,000 of company stock to his brother 28-May Smith paid wages to his workers of $1,800 30-May Smith paid office rent of $1,000 30-May Smith paid dividends to himself of $1,400 Requirements: 1. Enter the transactions for May into the accounting equation, calculating new balances after each entry. 2. Prepare the Income Statement for the month of May for Smith Construction. 3. Prepare the Statement of Retained Earnings for Smith Construction for the Month of May. 4. Prepare the Balance Sheet for Smith Construction as of May 31, 2010.

Answer rating: 100% (QA)

Transactions for May a May 1 Increase in Assets 10000 Cash Increase in Equity 10000 Common Stock b M... View the full answer