Question

Q3 .On April 28, Carpenter Printing signed a 1 year rental contract for office space, beginning May 1, and paid $9,140 for 2 months’ rent in advance. On April 29, Carpenter Printing signed a 1 year insurance contract for a comprehensive insurance policy with coverage beginning May 1. The full amount, $786, of the annual insurance policy is paid on April 29. On May 5, Carpenter Printing’s application for credit with a printing supplies vendor was approved and Carpenter Printing purchased supplies on account for $20,942. On May 10, Carpenter Printing printed brochures in a massive advertising campaign for the new business, using $4,814 of the supplies. Based on these transactions alone, what are the Total Expenses on the Income Statement on May 31?

Answer 1

Particulars Rent Expense for May Insurance Expense for May Supplies Expense Total Expense for May Amount $4,570.00 [$9140/2] $65.50 [$786/12] $4,814.00 $9,449.50 Total Expenses on the Income Statement on May 31 is $9449.50