Question

Nona Curry started her own consulting firm, Larkspur, Inc. on May 1, 2017. The following transactions occurred during the month of May: May 1 Stockholders invested $15,900 cash in the business in exchange for common stock 2 Paid $636 for office rent for the month. 3 Purchased $530 of supplies on account. 5 Paid $159 to advertise for the month in the County News. 9 Received $1,484 cash for services performed. 12 Paid $212 cash dividend, 15 Performed $4.452 of services on account. 17 Paid $2,650 for employee salaries. Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1.272 for services performed on account on May 15. Borrowed $5,300 from the bank on a note payable. Purchased office equipment for $2,120 paying $212 in cash and the balance on account. Paid $191 for utilities 20 26 29 30

Answer 1

5,936 Larkspur, Inc. Income Statement For the Month Ended May 31, 2017 Revenues Service Revenue Expenses Salaries expense Rent expense Utilities expense Advertising expense Total Expenses Net Income 2,650 636 191 159 3,636 2,300

I + II + II - Larkspur, Inc. Assets Liabilties Stockholders Equity Accounts Notes Accounts + Common + Retained Earnings Income Stmt heads Date Cash Receivable Supplies Equipment = Payable Payable + Stock + Revenues Expenses - Dividends 1-May 15,900 + 15,900 + 2-May (636) + + (636) Rent expense 3-May 530 530 + + 5-May (159) + (159) Advertising expense 9-May 1,484 + + 1,484 Service Revenue 12-May (212) + + (212) Dividends 15-May 4,452 + + 4,452 Service Revenue 17-May (2,650) (2,650) - Salaries expense 20-May (530) (530) + 23-May 1,272 (1,272) 26-May 5,300 5,300 29-May (212) 2,120 = 1,908 + 30-May (191) (191) - Utilities expense Totals 19,366 3,180 530 2,120 5,300 1,908 + 15,900 + 5,936 (3,636) - (212) II + + II + II + + + + + + + 11