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TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 During June the following transactions occurred: 1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable). 2) Completed the job for which the customer paid $200 in May. Tops in Toplary collected $2,000 in cash once finished. 3) Paid $500 for the rent of July. 4) At the end of June notices that there are no supplles left. Makes a note to buy some in July. 5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600 6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers. 7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years. 8) In June 23rd Edward Scissorhands withdrew some cash for personat reasons ($2,000). Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the questions; At the end of the accounting period (June 30th. T account after AJE), what is the balance of Rent Expense? $1,000 5250 5500 None of the other alternatives are correct 50

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