Question

Nona Curry started her own consulting firm, Splish Brothers Inc., on May 1, 2022. The following transactions occurred during the month of May. May 1 Stockholders invested $22,350 cash in the business in exchange for common stock. 2 Paid $894 for office rent for the month. 3 Purchased $745 of supplies on account. 5 Paid $223 to advertise in the County News. 9 Received $2,086 cash for services performed. 12 Paid $298 cash dividend. 15 Performed $6,258 of services on account. 17 Paid $3,725 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,788 for services performed on account on May 15. 26 Borrowed $7,450 from the bank on a note payable. 29 Purchased office equipment for $2,980 paying $298 in cash and the balance on account. 30 Paid $268 for utilities.

Answer 1

Assets + Accounts receivable Date Cash Liabilities Stockholders' Equity + Supplies + Equipment = Notes payal + Accounts payab + Common stock Retained earnings + Revenues - Expenses - Dividends 22,350 + 894 22,350 + -894 + Rent expense | + 745 + 223 -223 + 2,086 + -298 + + 2,086 - + Advertising expense Service revenue 298 Cash Dividend Service revenue Salaries expense 6,258 + May-01 May-02 May-03 May-05 May-09 May-12 May-15 May-17 May-20 May-23 May-26 May-29 May-30 Total 6,258 - 3,725 745 -1,788 -3,725 + -745 + 1,788 + 7,450+ -298 + -268 + 27,223 + 7,450 + 2,980 = 2,682 Utilities expense 268 - 5,110 - 4,470 745 + 2,980 = 7,450 + 2,682 + 22,350 + 8,344 - 298