Homework
The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.
|
|
Assets
|
Liab.
|
Owner's Equity
|
|
|
Cash
|
Accts.
Rec.
|
Supp.
|
Equip.
|
Accts.
Pay.
|
T.Cotton,
Capital
|
Rev.
|
Exp.
|
|
Balances, May 1
|
14,600
|
2,600
|
5,400
|
33,400
|
6,600
|
49,400
|
0
|
0
|
|
Paid for utilities
|
- 940
|
|
|
|
|
|
|
+ 940
|
|
New balances
|
13,660
|
2,600
|
5,400
|
33,400
|
6,600
|
49,400
|
0
|
940
|
|
Sold services for cash
|
+ 4,940
|
|
|
|
|
|
+ 4,940
|
|
|
New balances
|
18,600
|
2,600
|
5,400
|
33,400
|
6,600
|
49,400
|
4,940
|
940
|
|
Paid a creditor
|
- 1,900
|
|
|
|
- 1,900
|
|
|
|
|
New balances
|
16,700
|
2,600
|
5,400
|
33,400
|
4,700
|
49,400
|
4,940
|
940
|
|
Sold services on credit
|
|
+ 2,700
|
|
|
|
|
+ 2,700
|
|
|
New balances
|
16,700
|
5,300
|
5,400
|
33,400
|
4,700
|
49,400
|
7,640
|
940
|
|
Paid salaries
|
- 8,700
|
|
|
|
|
|
|
+ 8,700
|
|
New balances
|
8,000
|
5,300
|
5,400
|
33,400
|
4,700
|
49,400
|
7,640
|
9,640
|
|
Paid telephone bill
|
- 310
|
|
|
|
|
|
|
+ 310
|
|
New balances
|
7,690
|
5,300
|
5,400
|
33,400
|
4,700
|
49,400
|
7,640
|
9,950
|
|
Withdrew cash for personal expenses
|
- 2,600
|
|
|
|
|
- 2,600
|
|
|
|
New balances
|
5,090
|
5,300
|
5,400
|
33,400
|
4,700
|
46,800
|
7,640
|
9,950
|
Required:
Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for May 31, 2019.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.