Problem 3-2A (Part Level Submission) Nona Curry started her own consulting firm,

Question

Problem 3-2A (Part Level Submission) Nona Curry started her own consulting firm, Tamarisk, Inc., on May 1, 2017. The following transactions occurred during the month of May. May 1 Stockholders invested $18,675 cash in the business in exchange for common stock. 2 Paid $747 for office rent for the month. 3 Purchased $622 of supplies on account. 5 Paid $187 to advertise in the County News. 9 Received $1,743 cash for services performed. 12 Paid $249 cash dividend. 15 Performed $5,229 of services on account. 17 Paid $3,112 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,494 for services performed on account on May 1s 26 Borrowed $6,225 from the bank on a note payable. 29 Purchased office equipment for $2,490 paying $249 in cash and the balance on account. 30 Paid $224 for utilities. Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the y Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was TAMARISK, INC. ent Notes Payable Date May 1 18675

Explanation / Answer

Accounting Equation: ASSETS LIABILITIES SHAREHOLDERS EQUITY Date Cash + AR + Supplies + Equip EQUALS NP + AP + CS + Retained Earnings Revenue - Expenses - Dividends 1-May 18675 EQUALS 18675 2-May -747 EQUALS -747 3-May 622 EQUALS 622 5-May -187 EQUALS -187 9-May 1743 EQUALS 1743 12-May -249 EQUALS -249 15-May 5229 EQUALS 5229 17-May -3112 EQUALS -3112 20-May -622 EQUALS -622 23-May 1494 -1494 EQUALS 26-May 6225 EQUALS 6225 29-May -249 2490 EQUALS 2241 30-May -224                                                   EQUALS                                                                      -224                    Total 22747 3735 622 2490 EQUALS 6225 2241 18675 6972 -4270 -249 G Total 29594 EQUALS 29594

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