Olivier Malette, owner of the company Extermination without problem, carried out the following operations during the month
Question:
Olivier Malette, owner of the company Extermination without problem, carried out the following operations during the month of May 20X2:
May 01 Deposit of the owner's initial investment of $9,000 at Banque Loyale
May 01 Issuance of check no. 172 from Banque Loyale, in the amount of $1,580.25, made payable to Immeubles Clara Itée in payment of the rent for the month of May. Note The company uses the expense account to record rent.
May 03 Issuance of check no. 173 for the cash purchase of office furniture from Buro-Plus for $5,750.84 (invoice no. 949511).
May 12 Purchase of office supplies on credit for $1,760.85 from Ferlac (invoice no. 6421). This invoice is payable in 30 days (use the Office Expenses account).
May 17 Issuance of check no. 174 for $225 in payment of the liability insurance invoice to Viger, Deniger Assurances (invoice no. 20120011). You consider this outlay as an operating expense.
May 19 Deposit in the company's bank account of $2,845 for various extermination work carried out in cash. The general ledger account used is Services rendered (invoice no. 1001).
May 21 Check no. 175 for $800 issued to Olivier Malette for his personal expenses.
May 24. Receipt of invoice no. 98732 amounting to $395.06 from the Rive-Sud newspaper for an advertisement published during the week. This invoice is payable in 30 days.
a) Prepare the income statement for May 20X2.
b) Prepare the statement of equity for May 20X2.
c) Prepare the balance sheet as at 31 May 20X2
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow