Reference no: EM132540131
Question - The Franklin Company recently started when owners invested $80,000 in the company; the company then had the following transactions/events:
May 1 Sold $5,000 of services to customers
May 1 Purchased $600 of supplies on account
May 1 Purchased equipment for $7,180, which is expected to be useful for 9 years at which time, it should be worth $700
May 1 Purchased a 6-month insurance policy for $600.
May 8 Paid suppliers $180 for purchases previously made on account
May 13 Received utility bill for $600; will send payment next month
May 31 Paid employee salaries for May totaled $4,800
May 31 Supplies on hand reported at $280
May 31 Sold services in advance to customers for $2,300
Required - On your own paper (or in Word or Excel), create an accounting framework and record all of the necessary transactions for the month.
Prepare an income statement and balance sheet for the month.