Reference no: EM132926807

Question - Company ABC is a consulting firm. The following transactions occurred during the month of May.

May 1 Owner invested $9,000 cash in the business.

May 2 Paid $850 for o?ce rent for the month.

May 3 Purchased $750 of supplies on account.

May 5 Paid $125 to advertise in the City newspaper

May 9 Received $4,500 cash for services performed.

May 12 Withdrew $800 cash for personal use.

May 15 Performed $8,400 of services on account.

May 17 Paid $2,500 for employee salaries.

May 20 Made a partial payment of $600 for the supplies purchased on account on May 3.

May 23 Received a cash payment of $4,000 for services performed on account on May 15.

May 26 Borrowed $5,000 from the bank on a note payable. Interest is 5% payable each month.

May 29 Purchased equipment for $4,200 on account.

May 30 Paid $275 for utilities

Required -

1. Make general journal entries for the above.

2. Make a trial balance.

3. Calculate the net income of the company.