During the first month of operations, May 2020, Marvel Corporation completed the following transactions: May: 1 Received $40,000 cash and issued common shares to shareholders. Borrowed $20,000 by signing a 12-month, 8% note payable. The entire $20,000 plus 12 months interest is due in fall on April 30, 2021. 1 1 The company paid a six- month insurance policy for $1,500. 1 The company paid $6,000 rent in advance for May, June and July. 1 Purchased equipment $6,000 on account. The equipment is estimated to be five years. Purchased supplies $750 on account. Performed services and received cash, $2,500. 10 Performed services and billed the customer $3,000. 15 Paid for the equipment purchased May 1. 15 Paid employee's salaries, $2,000. 18 Paid the utilities bill, $120. 22 Received $5,000 for services performed. 31 Received a bill for the telephone, $200 to be paid next month. 31 Salaries earned but remain unpaid, $2,000. 31 Supplies in the amount of $250 are still on hand. 31 Paid $1,000 dividends. 3.
During the first month of operations, May 2020, Marvel Corporation completed the following transactions: May: 1 Received $40,000 cash and issued common shares to shareholders. Borrowed $20,000 by signing a 12-month, 8% note payable. The entire $20,000 plus 12 months interest is due in fall on April 30, 2021. 1 1 The company paid a six- month insurance policy for $1,500. 1 The company paid $6,000 rent in advance for May, June and July. 1 Purchased equipment $6,000 on account. The equipment is estimated to be five years. Purchased supplies $750 on account. Performed services and received cash, $2,500. 10 Performed services and billed the customer $3,000. 15 Paid for the equipment purchased May 1. 15 Paid employee's salaries, $2,000. 18 Paid the utilities bill, $120. 22 Received $5,000 for services performed. 31 Received a bill for the telephone, $200 to be paid next month. 31 Salaries earned but remain unpaid, $2,000. 31 Supplies in the amount of $250 are still on hand. 31 Paid $1,000 dividends. 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the first month of operations, May 2020, Marvel Corporation completed the
following transactions:
May:
1
Received $40,000 cash and issued common shares to shareholders.
Borrowed $20,000 by signing a 12-month, 8% note payable. The entire
$20,000 plus 12 months interest is due in fall on April 30, 2021.
1
1
The company paid a six- month insurance policy for $1,500.
The company paid $6,000 rent in advance for May, June and July.
1
Purchased equipment $6,000 on account. The equipment is estimated to be
five years.
Purchased supplies $750 on account.
3.
Performed services and received cash, $2,500.
10
Performed services and billed the customer $3,000.
15
Paid for the equipment purchased May 1.
15
Paid employee's salaries, $2,000.
18
Paid the utilities bill, $120.
22
Received $5,000 for services performed.
31
Received a bill for the telephone, $200 to be paid next month.
31
Salaries earned but remain unpaid, $2,000.
31
Supplies in the amount of $250 are still on hand.
31
Paid $1,000 dividends.
1.
2.
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