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On May 1, Nimbus Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2017, and the revenues and expenses for the month of May. Cash   $ 4,650   Notes Payable   $28,000 Accounts Receivable   7,400   Rent Expense   900 Equipment   64,000   Maintenance and Repairs Expense   350 Service Revenue   6,800   Gasoline Expense   2,500 Advertising Expense   500   Utilities Expense   400 Accounts Payable   1,400         No additional investments were made in May, but the company paid dividends of $500 during the month. 1.- Prepare an income statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid. 2.- Prepare a retained earnings statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid. (List items that increase retained earnings first.)

On May 1, Nimbus Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2017, and the revenues and expenses for the month of May. Cash   $ 4,650   Notes Payable   $28,000 Accounts Receivable   7,400   Rent Expense   900 Equipment   64,000   Maintenance and Repairs Expense   350 Service Revenue   6,800   Gasoline Expense   2,500 Advertising Expense   500   Utilities Expense   400 Accounts Payable   1,400         No additional investments were made in May, but the company paid dividends of $500 during the month. 1.- Prepare an income statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid. 2.- Prepare a retained earnings statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid. (List items that increase retained earnings first.)

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...
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On May 1, Nimbus Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2017, and the revenues and expenses for the month of May.

Cash   $ 4,650   Notes Payable   $28,000
Accounts Receivable   7,400   Rent Expense   900
Equipment   64,000   Maintenance and Repairs Expense   350
Service Revenue   6,800   Gasoline Expense   2,500
Advertising Expense   500   Utilities Expense   400
Accounts Payable   1,400        



No additional investments were made in May, but the company paid dividends of $500 during the month.

1.- Prepare an income statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid.

2.- Prepare a retained earnings statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid. (List items that increase retained earnings first.)

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