On May 1, Sheffield Corp., a company that provides flying lessons, was started by using common stock in exchange for cash of $45,350. Following are the assets and liabilities of the company on May 31, 2020, and the revenues and expenses for the month of May. Cash $ 5,000 Notes Payable $28,000 Accounts Receivable 7,750 Rent Expense 1,050 Equipment 64,350 Maintenance and Repairs Expense 500 Service Revenue 7,150 Gasoline Expense 2,350 Advertising Expense 850 Utilities Expense 250 Accounts Payable 1,750 No additional investments were made in May, but the company paid dividends of $150 during the month. Prepare an income statement for the month of May. Sheffield Corp. Income Statement $ $ $ Prepare a retained earnings statement for the month of May. (List items that increase retained earnings first.) Sheffield Corp. Retained Earnings Statement $ : : $ Prepare a balance sheet at May 31. (List Assets in order of liquidity.) Sheffield Corp. Balance Sheet Assets $ $ Liabilities and Stockholders’ Equity
Problem 1-03A a1-a3, b1-b2 (Video)
On May 1, Sheffield Corp., a company that provides flying lessons, was started by using common stock in exchange for cash of $45,350. Following are the assets and liabilities of the company on May 31, 2020, and the revenues and expenses for the month of May.
Cash
$ 5,000
Notes Payable
$28,000
Accounts Receivable
7,750
Rent Expense
1,050
Equipment
64,350
Maintenance and Repairs Expense
500
Service Revenue
7,150
Gasoline Expense
2,350
Advertising Expense
850
Utilities Expense
250
Accounts Payable
1,750
No additional investments were made in May, but the company paid dividends of $150 during the month.
Prepare an income statement for the month of May.
Sheffield Corp.
Income Statement
$
$
$
Prepare a
Sheffield Corp.
Retained Earnings Statement
$
:
:
$
Prepare a
Sheffield Corp.
Balance Sheet
Assets
$
$
Liabilities and
$
$
$
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) $1,150 of gasoline expense was incurred but not paid.
Sheffield Corp.
Income Statement
$
$
$
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) $1,150 of gasoline expense was incurred but not paid. (List items that increase retained earnings first.)
Sheffield Corp.
Retained Earnings Statement
$
:
:
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