P1-3B Shawâs Garden was started on May 1 with an investment of$45,000 cash. Follow-ing are the assets, liabilities, and commonstock of the company on May 31, 2014, and the revenues and expensesfor the month of May, its first month of operations.Accountsreceivable $ 8,400 Notes payable $26,000Service revenue 10,400Salaries and wages expense 1,900Advertising expense 1,800 Equipment58,800Accounts payable 4,400 Maintenance and repairs expense2,100Cash 10,800 Insurance expense 400Common stock 45,000Noadditional common stock was issued in May, but a dividend of $1,600in cash was paid. Instructions (a) Prepare an income statement anda retained earnings statement for the month of May and a balancesheet at May 31, 2014.(b) Briefly discuss whether the companyâsfirst month of operations was a success.(c) Discuss the companyâsdecision to distribute a dividend.
P1-3B Shawâs Garden was started on May 1 with an investment of$45,000 cash. Follow-ing are the assets, liabilities, and commonstock of the company on May 31, 2014, and the revenues and expensesfor the month of May, its first month of operations.Accountsreceivable $ 8,400 Notes payable $26,000Service revenue 10,400Salaries and wages expense 1,900Advertising expense 1,800 Equipment58,800Accounts payable 4,400 Maintenance and repairs expense2,100Cash 10,800 Insurance expense 400Common stock 45,000Noadditional common stock was issued in May, but a dividend of $1,600in cash was paid. Instructions (a) Prepare an income statement anda retained earnings statement for the month of May and a balancesheet at May 31, 2014.(b) Briefly discuss whether the companyâsfirst month of operations was a success.(c) Discuss the companyâsdecision to distribute a dividend.
Related questions
Death Valley Resort opened for business on August 1, 2014. Itstrial balance before adjustment on August 31 is presentedbelow.
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Adjusting entries information:
Insurance expires for $500 a month
A count of supplies on August 31 shows $900 of supplies left onhand on August 31.
Depreciation expense for the month is $550 on Buildings and $300on Equipment.
Unearned rent of $2,000 was earned
Salaries of $600 were unpaid at August 31
Rental revenue of $1,600 were due from tenants at August 31, butnot yet recorded
Instructions
(a) | Journalize the adjusting entries for the month of August 31(6 points) |
(b) | Prepare an adjusted trial balance on August 31. (add newaccounts to the Trial Balance as necessary) (6points)
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(d) | Prepare an Income Statement (6 points),Retained Earnings Statement (4 points) aClassified Balance Sheet as of August 31.(8points)
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