Awesome Accounting Cycle Case Study #1: Easy Co. Easy, Co. Chart of Accounts 4 Revenue 41 Revenue Credit 1 Assets 11 Cash 12 Accounts Receivable 13 Supplies Debit Debit Debit 5 Expenses 51 Expense Debit 2 Liabilities 21 Accounts Payable Credit 3 Stockholders' Equity 31 Common Stock 32 Retained Earnings 33 Dividends Credit Credit Debit 1 Record the following entries of Easy, Co for the month of May using the Tabular Format May 1 Invested $25,000 cash in exhange for Common Stock 3 Paid cash for various expenses $3000 5 Purchased office supplies $2000 on account 17 New credit card arrived by mail with a $100,000 credit limit. 20 Revenue earned, $6000. Received $2000 cash, remainder on account. 21 Received $1000 cash from customer paying down account 25 Paid $1500 cash to creditor 30 Board of Directors declared and paid cash Dividend $500 31 Office Supplies Inventory Adjustment: End of Month On Hand Balance $1750 2 Add up each column placing the balance below the line 3 The equation A=L+SE should balance 4 Use each account balance to construct the Income Statement, Retained Earnings Statement and Balance Sheet Teachers: There is not an answer key. The students "get" the opportunity to make you one. You are welcome! :) . Easy, Co. ASSETS Liabilities . Stockholders' Equity Cash AR Supplies AP . CS RE Rev Exp Div May 5 + + + 21 25 30 31 + ASSETS Liabilities Stockholders' Equity Income Statement Revenues Less: Expenses Net Income Retained Earnings Statement Beginning Retained Earnings Add: Net Income Less: Dividends Ending Retained Earnings Statement of Stockholder's Equity Common Retained Stock Earnings Totals Beginning Balances Issued Stock Net Income Dividends Ending Balances Balance Sheet ASSETS Cash Accounts Receivable Supplies TOTAL ASSETS LIABILITIES Accounts Payable TOTAL LIABILITIES SHAREHOLDERS' EQUITY Common Stock Retained Earnings TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY