Question

P1-4B Laura Geller started her own consulting firm, Geller consulting on may 1, 2008. The following transactions occurred during the month of May.

May 1 Gller invested $8,000 cash in the business
2 Paid $800 for office rent for the month.
3 Purchased $500 of supplies on account
5 Pad $50 to advertise in the county news
9 Received $3,000 cash for services provided
12 Withdrew $700 cash for personal use
15 Performed $5,300 of services on account
17 Paid $3,000 for employees salaries.
20 Paid for the suppleis purchased on account on May 3.
23 Received a cash payment of $3,000 for services provided on account on May 15. 26 Borrowed $5,000 from the bank on a note payable
29 Purchased office equipment for $2,800 on account
30 Paid $150 for utilities

Instructions(a) show the effects of the previous transactions on the accounting equation using the following format.
(b) Prepare an income statement for the month of May
(c) Prepare a balance sheet at may 31, 2008

Answer 1

Hi, As per your requirement i am hereby prepared Income statement and balance sheet for the month of May. Although if we do it by starting with Ledger and then trail balance and then income statement and balance sheet. Although i think you will easily understand this and if you have any problem in understanding any entry please write it in comment and i will be very much happy to help you out in detail. Please like if you feel so............Thank you