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Continuing Case
Modified Accounting for Business Operations Starting in May, Nicole has decided that she has everything she needs to open her doors to customers. To keep up with competition, Nicole has added gift certificates and has started to advertise her company more to keep her business going in the long term. Here is a sample of some transactions that occurred in the month of May at Nicole's Getaway Spa (NGS). May 1 Paid $3,000 cash for an insurance policy that covers the period from June 1 until May 31 next year May 4 Ordered five new massage tables from Spa Supplies Unlimited for $250 each for future delivery. May 7 Provided $800 of spa services to customers on account. May 10 Received spa supplies purchased for $800 on account to use at Nicole's Getaway Spa. May 13 Received a bill for $60 for running an advertisement in the newspaper in May. The bill was paid in cash. May 16 Paid one-quarter of the amount owed from May 10. May 19 Issued $1,900 of gift certificates to customers for cash. May 20 Obtained financing from the bank by signing a $5,000 two-year note payable. May 22 Received two of the massage tables ordered on May 4 and paid for the two massage tables in cash. May 25 Paid $500 cash for utility bills for services received and billed in May.
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