Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. The following transactions occurred
Question:
The following transactions occurred during the month of May.
May 1 Trixie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.
Instructions
(a) Show the effects of the previous transactions on the accounting equation using the following format.
![Trixie Maye started her own consulting firm, Matrix Consulting, on](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images7/426-B-A-A-C(5123).png)
(b) Prepare an income statement for the month of May.
(c) Prepare a balance sheet at May 31,2017.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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