The accountant for Stanley Siding, Inc., posted adjusting entries (a) through (e) to the accounts at May 31, 2016. Selected balance sheet accounts and all the revenues and expenses of the entity follow in T-account form.

Requirements
1. Explain the purpose for each adjusting entry.
2. Calculate ending balances in the accounts and use the appropriate accounts to prepare the income statement of Stanley Siding, Inc., for the month ended May 31, 2016. List expenses in order from largest to smallest.
3. Were the May operations successful? Give the reason for your answer?

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Accounța Receivable Accumulated Depreciation, Equipment 6,000 850 Accumulated Depreciation, Building 28,000 2,200 Supplies 1,800 (a) 600 2,800 (e) 1,400 Salaries Payable (d) 2,100 Service Revenue 5,530 1,400 (e) Salaries Expense 2,500 2,100 Supplies Expense Depreciațion Expense, Depreciațion Expense, (a) 600| Equipment Building 2.200| (d) (b) (c) 850