Question

Kimberly Young started her own consulting firm, Young Consulting Inc., on May 1, 2022. The following transactions occurred during the month of May. May 1 Stockholders invested $18,900 cash in the business in exchange for common stock. 2 Paid $756 for office rent for the month. 3 Purchased $630 of supplies on account. 5 Paid $189 to advertise for the month in the County News. 9 Performed services for customer for $1,764 cash. 12 Paid $252 cash dividend. 15 Performed $5,292 of services on account. 17 Paid $3,150 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,512 for services performed on account on May 15. 26 Borrowed $6,300 from the bank on a note payable. 29 Purchased office equipment for $2,520 paying $252 in cash and the balance on account. 30 Paid $236 for utilities.
Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year. Include margin explanations for any changes in revenues or expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Answer 1

Answer:

I used an excel spreadsheet to answer this question.

           

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