90.2K

Verified Solution

Link Copied!

P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. The following transactions occurred during the month of May. Analyze transactions and prepare financial statements. (LO 3, 4, 5) May 1 Trixie 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 performed. 12 Withdrew $1,000 cash for personal use. 15 Performed $5,400 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 performed on account on May 15. 26 Borrowed $5,000 from the bank on a note payable. 29 Purchased equipment for $4,200 on account. 30 Paid $275 for utilities. Instructions (a) Show the effects of the previous transactions on the accounting equation using the following format. (a) Total assets $20.800 Owner's Equity Assets Liabilities Accounts Notes Accounts Owner's Owner's Date Cash + Receivable + Supplies + Equipment= Payable + Payable + Capital -Drawings + Revenues - Expenses (b) Net income $5,600 (d Cash $14,600 (b) Prepare an income statement for the month of May. (c) Prepare a balance sheet at May 31, 2017

Answer & Explanation Solved by verified expert

See Answer