Reference no: EM132818526
Question - Aisha Shahzad started a consulting firm, Aisha Consulting, on June 1, 2014. The following transactions occurred during the month of June.
June 1 Aisha invested $8,000 cash in the business in exchange for stock.
June 2 Paid $800 for office rent for the month.
June 3 Purchased $500 of supplies on account.
June 5 Paid $50 to advertise in the County News.
June 9 Received $3,000 cash for services provided.
June 12 Declared and paid a $700 cash dividend.
June 15 Performed $3,300 of services on account.
June 17 Paid $2,100 for employee salaries.
June 20 Paid for the supplies purchased on account on May 3.
June 23 Received a cash payment of $2,000 for services provided on account on May 15.
June 26 Borrowed $5,000 from the bank on a note payable.
June 29 Purchased office equipment for $2,300 on account.
June 30 Paid $150 for utilities.
Required -
(a) Show the effects of the previous transactions on the accounting equation. Include margin explanations for any changes in the Retained Earnings account in your analysis.
(b) Prepare an income statement for the month of May.
(c) Prepare a balance sheet at May 31, 2014.