P1-3B Shaw's Garden was started on May 1 with an investment of $45,000 cash. Follow- ing are the assets, liabilities, and common stock of the company on May 31, 2014, and the revenues and expenses for the month of May, its first month of operations. Accounts receivable Service revenue Advertising expense Accounts payable Cash $ 8,400 10,400 1,800 4,400 10,800 45,000 Notes payable Salaries and wages expense $26,000 1,900 58,800 2,100 Equipment Maintenance and repairs expense Insurance expense 400 Common stock No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions (a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2014.

P1-3B Shaw's Garden was started on May 1 with an investment of $45,000 cash. Follow- ing are the assets, liabilities, and common stock of the company on May 31, 2014, and the revenues and expenses for the month of May, its first month of operations. Accounts receivable Service revenue Advertising expense Accounts payable Cash $ 8,400 10,400 1,800 4,400 10,800 45,000 Notes payable Salaries and wages expense $26,000 1,900 58,800 2,100 Equipment Maintenance and repairs expense Insurance expense 400 Common stock No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions (a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2014.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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