Nona Curry started her own consulting firm, Blossom Consulting Inc., on May 1 , 2 0 2
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Question:
Nona Curry started her own consulting firm, Blossom Consulting Inc., on May The following transactions occurred during the month of May.
May Stockholders invested $ cash in the business in exchange for common stock.
Paid $ for office rent for the month.
Purchased $ of supplies on account.
Paid $ to advertise in the County News.
Received $ cash for services performed.
Paid $ cash dividend.
Performed $ of services on account.
Paid $ for employee salaries.
Paid for the supplies purchased on account on May
Received a cash payment of $ for services performed on account on May
Borrowed $ from the bank on a note payable.
Purchased office equipment for $ paying $ in cash and the balance on account.
Paid $ for utilities.
a
Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign or parentheses in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Include margin explanations for any changes in Retained Earnings.
b
Prepare an income statement for the month of May
c
Prepare a classified balance sheet at May List current assets in order of liquidity.
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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