yPLUSl Kimnel, Accounting, ce Nona Curry started her own consulting firm, Curry

Question

yPLUSl Kimnel, Accounting, ce Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions accurred during the month of May. May 1 invested $15,000 cash in the business in exchange for common stock Paid $600 for office rent for the month. Purchased $500 of supplies on account. 2 5 Paid $150 to advertise in the County News 9 Received $1,400 cash for services performed. 12 Paid $200 cash dividend. 15 Performed $4,200 of services on account 17 Paid $2,500 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,200 for services performed on account on May 15 26 Borrowed $5,000 from the bank on a note payable. 29 Purchased office equipment for $2,000 paying $200 in cash and the balance on account. 30 Paid $180 for utilities. Its by on the equation using the following format. Assume the note payable is to be repaid within the year. (If a trans decrease in Liabilities Date

Explanation / Answer

Retained earnings= net income-dividend paid= 2170-200= 1970

Income statement: Revenues Sales revenue 5600 Cash-    1400 Credit-   4200 Expenses: Office rent 600 Advertisement 150 Salaries 2500 utilities 180 Total 3430 Net income 2170 Balance sheet: Current assets Cash 18270 Accounts receivable 3000 Supplies 500 Total current assets 21770 Equipment 2000 Total assets 23770 Liabilities and stockholders equity Accounts payable 1800 Note payable 5000 Total liabilities 6800 Common stock 15000 Retained earnings 1970 Total stockholders equity 16970 Total Liabilities and stockholders equity 23770

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