Michelle Rodriguez started her own consulting firm, Rodriguez Consulting, on May 1, 2010.The…


Question Description:

33

Michelle Rodriguez started her own consulting firm, Rodriguez Consulting, on May 1, 2010.The following transactions occurred during the month of May. May 1 Michelle invested $7,000 cash in the business. 2 Paid $900 for office rent for the month. 3 Purchased $600 of supplies on account. 5 Paid $125 to advertise in the County News. 9 Received $4,000 cash for services provided. 12 Withdrew $1,000 cash for personal use. 15 Performed $6,400 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 $4,000 for services provided on account on May 15. 26 Borrowed $5,000 from the bank on a note payable. 29 Purchased office equipment for $3,100 on account. 30 Paid $175 for utilities. Instructions (a) Show the effects of the previous transactions on the accounting equation using the following Assets Liabilities OWNER’ Equity Data Cash +Accounts Receivable+ Supply’s+ Office equipment= Notes Payable +Account payable +Rodriguez +Capital -M. Rodriguez,-Drawing +Revenues – Expenses (b) Prepare an income statement for the month of May. (c) Prepare a balance sheet at May 31, 2010.

Answer

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