Answer Happy

P1.4A (LO 4,5) Financial Statement Maisie Taft started her own consulting firm, Maisie Consult- ing, on May 1, 2020. The following transactions occurred during the month of May. May 1 Maisie invested $7,000 cash in the business. 2 Paid $900 for office rent for the month. 3 Purchased $800 of supplies on account. Paid $125 to advertise in the County News. 5 9 Received $4,000 cash for services performed. Withdrew $1,000 cash for personal use. 12 15 Performed $6,400 of services on account. 17 Paid $2,500 for employee salaries 20 Made a partial payment of $600 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. Instructions a. Show the effects of the previous transactions on the accounting equation using the following format. a. Total assets $22,000 Assets Liabilities Accounts Date Cash + Receivable + Supplies + Equipment b. Prepare an income statement for the month of May. c. Prepare a balance sheet at May 31, 2020. Analyze transactions and prepare financial statements. Notes Accounts Owner's Payable + Payable + Capital Owner's Equity Owner's Drawings + Revenues - Expenses b. Net income $6,600 c. Cash $14,600