Questions:
Benito Mendez opened Mendez Appraisals. He rented office space and has a part-time secretary to answer the telephone and make appraisal appointments. His chart of accounts is as follows:
Mendez's transactions for the first month of business are as follows:
May 1 Mendez invested cash in the business, $5,000.
2 Paid rent, $500.
3 Purchased office supplies, $100.
4 Purchased office equipment on account, $2,000.
5 Received cash for services rendered, $280.
8 Paid telephone bill, $38.
9 Paid electric bill, $42.
10 Received cash for services rendered, $310.
13 Paid part-time employee, $500.
14 Paid car rental for out-of-town trip, $200.
15 Paid for newspaper ad, $30.
18 Received cash for services rendered, $620.
19 Paid mileage reimbursement for part-time employee's use of personal car for business deliveries (transportation expense), $22.
21 Mendez withdrew cash for personal use, $50.
23 Made payment on account for office equipment purchased earlier, $200.
24 Earned appraisal fee, which will be paid in a week, $500.
26 Paid for newspaper ad, $30.
27 Paid for local softball team sponsorship (miscellaneous expense), $15.
28 Paid part-time employee, $500.
29 Received cash on account, $250.
30 Received cash for services rendered, $280.
31 Paid cab fare (transportation expense), $13.
REQUIRED
1. Set up general ledger accounts from the chart of accounts.
2. Journalize the transactions for May in a two-column general journal. Use the following journal page numbers: May 1-10, page 1; May 13-24, page 2; May 26-31, page 3.
3. Post the transactions to the general ledger.
4. Prepare a trial balance.
5. Prepare an income statement and a statement of owner's equity for the month of May, and a balance sheet as of May 31, 20--.