Reference no: EM132470827

Madame Shira began a fortune telling business on May 1. The following transactions occurred:

1. Owner Madame Shira invested $5,000 cash in the business.

2. Purchased $2,000 of furniture with a down payment of $500; the rest by issuing an account payable to be paid in three monthly installments.

3. Paid $700 rent.

4. Purchased a crystal ball for $300.

5. Paid $1,700 for a 12-month insurance policy.

6. During the first month received $2,500 from cash customers.

7. Sent billings of $2,000 for services rendered to credit customers.

8. Paid assistant $1,500 wages for the month.

9. Received $600 in payments from credit customers.

10. Borrowed $3,200 by signing a note.

11. Made a $500 payment on the furniture bill (from transaction 2).

12. Owner withdrew $300 cash for personal use.13.Paid bills for advertising $60, utilities $39, and repairs $52.

?Required:

Question 1. Enter the above transactions in an accounting equation work sheet.

Question 2. Provide an income statement for Madame Shira for the month of May.

Question 3. Provide a statement of owner's equity for the month of May.