Question

After several months of planning, Judy Shaw started a drug-test business for professional sports associations called Shaw Inc. The following events occurred during the entity's first month: 1. On May 1, Judy started the firm, investing $15,000 cash and $50,000 of equipment. 2. On May 31, Shaw Inc. paid $2,000 cash to rent space in a strip mall for May. 3. On May 3, Shaw Inc. paid $1,500 cash for furniture for the shop. 4. On May 4, it purchased $3,500 of equipment for the shop (using a long-term note payable). 5. On May 5, Shaw Inc. opened for business. Cash received from services provided in the first week and a half of business (ended May 15) is $1,050. 6. On May 15, it paid $250 cash to an assistant for working during the grand opening. 7. On May 17, it provided $350 of lab-test services on account (invoiced). 8. On May 17, it received a $220 check for services previously rendered on account. 9. Cash received from services provided during the second half of May is $900. Shaw Inc. had not previously issued invoices for these services. 10. On May 31, it paid $2,500 cash dividends to Murphy. 11. On May 31, it paid a $450 installment toward principal on the note payable entered into on May 4. Find: A Transaction Table for the above events. You may wish to use some or all of the following accounts: Cash; Accounts Receivable; Furniture; Store Equipment; Note Payable; Paid in Capital; Dividends; Revenues; and Expenses.

Answer 1

Tournal entries in the books of shaw INC are in Date Account Debit ($) Cordites) May 1 cash 15000 Equipment 50,000 To paid in capital 65000 May 31 Rent Expenses To cash I may 3 1,500 Furniture To 1500 cash May 4 3,5oo Equipment To Notes payable 13500 Mays loso cash To service Revenge 250 May is wages To cash 250 May 17 350 Account receivable To service Revenue 900 900 May - cash - To service Revenue may 31 Dividend To cash 2,500 2,500 May 31 Notes payable To cash 4 450