Reference no: EM132634743

Chengiz Hong started her own consulting firm, Chengiz Consulting, on May 1, 2014. The following transactions occurred during the month of May.

May 1 Hong invested $7,000 cash in the business.

2 Paid $900 for office rent for the month.

3 Purchased $600 of supplies on account.

5 Paid $125 to advertise in the County News.

9 Received $4,000 cash for services performed.

12 Withdrew $1,000 cash for personal use.

15 Performed $5,400 of services on account.

17 Paid $2,500 for employee salaries.

20 Paid for the supplies purchased on account on May 3.

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

26 Borrowed $5,000 from the bank on a note payable.

29 Purchased equipment for $4,200 on account.

30 Paid $275 for utilities.

Required:

Question (a) Show the effects of the previous transactions on the accounting equation using the following format.

Assets Liabilities Owner's Equity Accounts Notes Accounts Owner's Owner's Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital -Drawings + Revenues - Expenses

Question (b) Prepare an income statement for the month of May.

Question (c) Prepare a balance sheet at May 31, 2014.

Question (d) Explain the window dressing of balance sheet item