Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $18,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.
Cash . . . . . . . . . . . . . . . . . . . . . $44,132
Office supplies . . . . . . . . . . . . . . 1,090
Prepaid insurance . . . . . . . . . . . . 4,700
Office equipment . . . . . . . . . . . . 11,200
Accounts payable . . . . . . . . . . . . 11,200
Common stock . . . . . . . . . . . . . 18,000
Dividends . . . . . . . . . . . . . . . . . . 4,328
Engineering fees earned . . . . . . . 44,000
Rent expense . . . . . . . . . . . . . . . 7,750
Required
1. Prepare a trial balance for this business as of the end of May.
Analysis Components
2. Analyze the accounts and their balances and prepare a list that describes each of the seven most likely transactions and their amounts.
3. Prepare a report of cash received and cash paid showing how the seven transactions in part 2 yield the $44,132 ending Cash balance.