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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.

FINANCIAL ACCOUNTING
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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Find the classified balance sheet of month of May2020 with steps of calculation 

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.
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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