After several months of planning, Denise Murphy started aproperty management business for

the for the properties that its owners invest called ABCProperty Management (“ABC”). The

following events occurred during its first month:

1. On May 1, Murphy started the firm, investing $3,000 cash and$15,000 of equipment.
2. On May 2, ABC paid $600 cash for furniture for the shop.
3. On May 3, ABC paid $500 cash to rent space in a strip mall forMay.
4. On May 4, ABC purchased $1,200 of equipment on credit for theshop (using a long-term note payable).
5. On May 5, ABC opened for business. Cash received from servicesprovided in the first week and a half of business (ended May 15) is$825.
6. On May 15, it provided $100 of property management services onaccount (invoiced).
7. On May 17, it received a $100 check for services previouslyrendered on account.
8. On May 17, it paid $125 to an assistant for work during thestore opening.
9. Cash received from services provided during the second half ofMay is $930.
10. On May 31, it paid an $400 installment toward principal on thenote payable entered into on May 4.
11. On May 31, it paid $900 cash dividends to Murphy.

1. Set-up T-accounts for each of the accounts and post the journalentries completed in Homework 2 to those T-accounts (Please note itis the same Problem as in Homework 2).
2. Prepare a simplified balance sheet and income statement.