Reference no: EM132993227

Accounting transactions for May

Launching the shop required the following investments (Start-up funding):

• May 1: invested $30,000 of my own cash into my new business.
• May 1: borrowed a loan of $95,000 credit from the Bank of Madrid.
• May 1: paid $5100 cash for legal fees.
• May 1: paid $500 cash for ads and marketing.
• May 1: paid $20,000 cash for inventory.
• May 1: paid $8,000 cash for rent.
• May 31: received $8,000 cash through sales.
• May 30: paid $15,000 cash for employee salaries.
• May 2: paid $2,000 cash for miscellaneous.
• May 2: paid $30,000 cash for the purchase of equipment.
• May 3: sold a manufacturer's machine for $7,000 cash.
• May 4: paid $6,000 cash for furniture and fittings.

Question 1: Enter the journal entries to record all of the business activity for the month of May.

Question 2: Compile a trial balance from the journal entries.

Question 3: draw up the income statement, statement of changes in equity, and balance sheet for your client.