Reference no: EM132527552

Question - Make the adjusting entries as described below for the Starshine Bakery Company. This is for the month of May 31, 2019. All Journal Entries are dated May 31, 2019. Identify EACH of the 8 transactions as Operating, Investing or Financing.

1. Beginning baking supplies at May 1st were $1,645. A purchase of $1,000 of supplies was made on May 14thand another $2,450 were purchased on May 21st. By May 31st, a count showed only $350 in inventory. Record the baking supplies that were used in May.

2. In January, Sunny Shine prepaid six (6) months of automobile insurance for the delivery truck in the amount of $3,600 total. Record the auto insurance expense only for the month of May.

3. Sunny had to purchase all new equipment for her shop when she opened on January 1, 2019. She purchased an industrial refrigerator ($4,500), an industrial mixer ($3,500) and an industrial oven ($5,800). She estimated that the equipment could be used to produce revenue for 5 years (60 months) Record the baking equipment depreciation for the month of May only. The depreciation for January through April has already been recorded.

What is the book value (on the balance sheet) of the equipment on May 31st?