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Homework answers / question archive / P1
P1.4A (LO 4, 5) Financial Statement Maisie Taft started her own consulting fi rm, Maisie Consulting,
on May 1, 2020. The following transactions occurred during the month of May.
May 1 Maisie invested $7,000 cash in the business.
2 Paid $900 for offi ce rent for the month.
3 Purchased $800 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 $6,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Made a partial payment of $600 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 eff ects of the previous transactions on the accounting equation using the following format.
Assets Liabilities Owner's Equity
Accounts Notes Accounts Owner's Owner's
Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital - Drawings + Revenues - Expenses a. Total assets $22,000
b. income statement for the month of May. b. Net Income $6,600
c. a balance sheet at May 31, 2020. c. Cash $14,600
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