| | Module 1 Assignment: |
| | Bill Smith opened Smith Construction on April 1, 2010. The following amounts summarize the transactions and financial position of Smith construction as of May 31. |
| | During May the following transactions occurred: |
| | 1-May | Smith received $10,000 as an inheritance and used it to buy stock in the company. |
| | 7-May | Smith paid his accounts payable balance. |
| | 15-May | Smith replaced some windows for a client and received $5,000 cash for his services |
| | 17-May | Smith collected $1,200 from a customer for a job performed in April |
| | 20-May | Smith purchased supplies for $1,000 on account |
| | 24-May | Smith gave a bid to a customer and billed the customer for the services performed $800 |
| | 25-May | Smith sold $5,000 of company stock to his brother |
| | 28-May | Smith paid wages to his workers of $1,800 |
| | 30-May | Smith paid office rent of $1,000 |
| | 30-May | Smith paid dividends to himself of $1,400 |
| | Requirements: |
| | 1 | Enter the transactions for May into the accounting equation, calculating new balances after each entry. |
| | | Assets | | | | | | | = | Liabilities | + | Stockholders' Equity |
| | | Cash | + | Accounts receivable | + | Supplies | + | Equipment | | Accounts payable | | Common stock | + | Service revenue | - | Salaries expense | - | Rent Expense | - | Dividends | + | Retained Earnings |
| | April Bal. | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
| | 1-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 7-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 15-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 17-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 20-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 24-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 25-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 28-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 30-May |
| | | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 30-May |
| | Bal. | $1,540.00 | + | $3,680.00 | + | | + | $24,000.00 | = | $5,100.00 | + | $21,000.00 | + | $5,100.00 | - | $1,980.00 | - | | - | | + |
|
| | 2 | Prepare the Income Statement for the month of May for Smith Construction. |
| | | Smith Construction |
| | | Income Statement |
| | | For the Two Months Ended May 31, 2010 |
| | 3 | Prepare the Statement of Retained Earnings for Smith Construction for the Month of May. |
| | | Smith Construction |
| | | Statement of Retained Earnings |
| | | For the Two Months Ended May 31, 2010 |
| | 4 | Prepare the Balance Sheet for Smith Construction as of May 31, 2010. |
| | | Smith Construction |
| | | Balance Sheet |
| | | May 31, 2010 |
| | | ASSETS | | | | | | LIABILITIES |
| | | | | | | | | STOCKHOLDER'S EQUITY |
mizani
finacial_1.xlsx
