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Accounting problem: Analyze transactions and compute net income




Problem 3-2A;Nina Finzelberg started her own consulting firm, Finzelberg Consulting Inc., on May 1, 2014. The following transactions occurred during the month of May.;May 1 Stockholders invested $ 17,619 cash in the business in exchange for common stock.;2 Paid $ 705 for office rent for the month.;3 Purchased $ 587 of supplies on account.;5 Paid $ 176 to advertise in the County News.;9 Received $ 1,644 cash for services performed.;12 Paid $ 235 cash dividend.;15 Performed $ 4,933 of services on account.;17 Paid $ 2,937 for employee salaries.;20 Paid for the supplies purchased on account on May 3.;23 Received a cash payment of $ 1,410 for services performed on account on May 15.;26 Borrowed $ 5,873 from the bank on a note payable.;29 Purchased office equipment for $ 2,349 paying $ 235 in cash and the balance on account.;30;Paid $ 211 for utilities.;1)Show the effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.);2) Prepare an income statement for the month of May 2014.;3) Prepare a classified balance sheet at May 31, 2014. (List current assets in order of liquidity)


Paper#78525 | Written in 18-Jul-2015

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