P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. Analyze transactions and The following transactions occurred during the month of May. prepare financial statements. (LO 3, 4, 5) May 1 Trixie invested $7,000 cash in the business. 2 Paid $900 for office rent for the month. 3 Purchased $600 of supplies on account. 5 Paid $125 to advertise in the County News. 9 Received $4,000 cash for services performed. 12 Withdrew $1,000 cash for personal use. 15 Performed $5,400 of services on account. 17 Paid $2,500 for employee salaries. 20 Paid 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 (a) Total assets $20,800 following format. Assets Liabilities Owner's Equity Accounts Notes Accounts Owner's Owner's Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital –Drawings + Revenues – Expenses (b) Prepare an income statement for the month of May. (c) Prepare a balance sheet at May 31, 2017. (b) Net income $5,600 (c) Cash $14,600

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Chapter8: Fraud, Internal Controls, And Cash
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P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. Analyze transactions and
The following transactions occurred during the month of May.
prepare financial statements.
(LO 3, 4, 5)
May 1 Trixie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $600 of supplies on account.
5 Paid $125 to advertise in the County News.
Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $5,400 of services on account.
17
Paid $2,500 for employee salaries.
20
Paid 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 (a) Total assets $20,800
following format.
Assets
Liabilities
Owner's Equity
Accounts
Notes Accounts Owner's Owner's
Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital – Drawings + Revenues - Expenses
(b) Prepare an income statement for the month of May.
(c) Prepare a balance sheet at May 31, 2017.
(b) Net income $5,600
(c) Cash $14,600
Transcribed Image Text:P1-4A Trixie Maye started her own consulting firm, Matrix Consulting, on May 1, 2017. Analyze transactions and The following transactions occurred during the month of May. prepare financial statements. (LO 3, 4, 5) May 1 Trixie invested $7,000 cash in the business. 2 Paid $900 for office rent for the month. 3 Purchased $600 of supplies on account. 5 Paid $125 to advertise in the County News. Received $4,000 cash for services performed. 12 Withdrew $1,000 cash for personal use. 15 Performed $5,400 of services on account. 17 Paid $2,500 for employee salaries. 20 Paid 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 (a) Total assets $20,800 following format. Assets Liabilities Owner's Equity Accounts Notes Accounts Owner's Owner's Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Capital – Drawings + Revenues - Expenses (b) Prepare an income statement for the month of May. (c) Prepare a balance sheet at May 31, 2017. (b) Net income $5,600 (c) Cash $14,600
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