Reference no: EM132821204
After several months of planning, Denise Murphy started a property management business for the for the properties that its owners invest called ("VPM"). The following events occurred during its first month:
a. On May 1, Murphy started the firm, investing $3,000 cash and $15,000 of equipment.
b. On May 2, VPM paid $600 cash for furniture for the office.
c. On May 3, VPM paid $500 cash to rent commercial space for May.
d. On May 4, VPM purchased $1,200 of equipment on credit for its maintenance shop (using a long-term note payable).
e. On May 5, VPM opened for business. Cash received from services provided in the first week and a half of business (ended May 15) is $825.
f. On May 15, it provided $100 of property management services on account (invoiced).
g. On May 17, it received a $100 check for services previously rendered on account.
h. On May 17, it paid $125 to an assistant for work during the store opening.
i. Cash received from services provided during the second half of May is $930.
j. On May 31, it paid an $400 installment toward principal on the note payable entered into on May 4.
k. On May 31, it paid $900 cash dividends to Murphy.
Problem 1: How to do a General Journal
Problem 2: Post the General Journal entries to their appropriate accounts
Problem 3: How to Prepare a Trial Balance
Problem 4: How to Prepare a simplified balance sheet, income statement and statement of cash flows from the Trial Balance