Reference no: EM132684038

Oneschuk Contractors Corporation had the following transactions during its first month of operation ended May 31, 2019:

May 1

Issued common stock for $5,000 cash

1 Paid $1,500 rent in advance for three months: May, June, and July (recorded as prepaid rent)

2 Purchased $1,000 of supplies on credit (record the asset as unused supplies)

3 Billed a customer $1,500 for repairs performed

4 Paid $50 for an advertisement in The Daily Bugle

5 Received $250 cash for work completed today

10 Collected the amount billed on May 3

15 Paid $500 cash to a creditor

18 Borrowed $2,000 cash from the bank

20 Signed a major contract for work to be done in June

22 Purchased for cash $3,000 of equipment

25 Billed customers $3,500 for work completed to date

27 Paid the following expenses: electricity, $75; telephone, $25; and wages, $2,000

31 Transferred the amount of May's rent ($500) from prepaid rent to rent expense

31 Counted $200 of supplies still on hand: the rest had been used during May

Required:

Question 1. Prepare journal entries to record the May transactions using only the account titles found on the "T" accounts.

Question 2. Post the journal entries to the T-accounts. Total each account and determine the balance.

Question 3. Prepare trial balance at May 31, 2019, in account number order.

Question 4. Prepare the income statement and statement of owners' equity for the month of May.

Question 5. Prepare the balance sheet at May 31.