Assessment Financial Accounting and Analysis GM501 Question 3 Chengiz Hong started her own consulting firm, Chengiz Cons

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Assessment Financial Accounting and Analysis GM501 Question 3 Chengiz Hong started her own consulting firm, Chengiz Cons

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Assessment Financial Accounting And Analysis Gm501 Question 3 Chengiz Hong Started Her Own Consulting Firm Chengiz Cons 1
Assessment Financial Accounting And Analysis Gm501 Question 3 Chengiz Hong Started Her Own Consulting Firm Chengiz Cons 1 (127.65 KiB) Viewed 34 times
Question 3

Chengiz Hong started her own consulting firm, Chengiz Consulting, on May 1, 2014. The following transactions occurred during the month of May.
May 1 Hong invested $7,000 cash in the business.

2 Paid $900 for office rent for the month.

3 Purchased $600 of supplies on account.

5 Paid $125 to advertise in the County News.

9 Received $4,000 cash for services performed.

12 Withdrew $1,000 cash for personal use.

15 Performed $5,400 of services on account.

17 Paid $2,500 for employee salaries.

20 Paid for the supplies purchased on account on May 3.

23 Received a cash payment of $4,000 for services performed on account on May 15.

26 Borrowed $5,000 from the bank on a note payable.

29 Purchased equipment for $4,200 on account.

30 Paid $275 for utilities.


Required:

(a) Show the effects of the previous transactions on the accounting equation using the following format.

(b) Prepare an income statement for the month of May.

(c) Prepare a balance sheet at May 31, 2014.

(d) Explain the window dressing of balance sheet item. Provide THREE (3) examples for your argument.

(40 marks)
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Assessment Financial Accounting and Analysis GM501 Question 3 Chengiz Hong started her own consulting firm, Chengiz Consulting, on May 1, 2014. The following transactions occurred during the month of May. May 1 Hong invested $7,000 cash in the business. 2 Paid $900 for office rent for the month. 3 Purchased $600 of supplies on account. 5 Paid $125 to advertise in the County News. 9 Received $4,000 cash for services performed. 12 Withdrew $1,000 cash for personal use. 15 Performed $5,400 of services on account. 17 Paid $2,500 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $4,000 for services performed on account on May 15. 26 Borrowed $5,000 from the bank on a note payable. 29 Purchased equipment for $4,200 on account. 30 Paid $275 for utilities. Required: (a) Show the effects of the previous transactions on the accounting equation using the following format. Assets Liabilities Owner's Equity Accounts Notes Accounts Owner's Owner's Date Cash + Receivable + Supplies - Equipment = Payable + Payable + Capital - Drawings + Revenues - Expenses (b) Prepare an income statement for the month of May. (c) Prepare a balance sheet at May 31, 2014. (d) Explain the window dressing of balance sheet item. Provide THREE (3) examples for your argument. (40 marks) [Total =100 marks]
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