Prepare an income statement for the month of may and

Question

Carla Quentin started her own consulting firm, Quentin Consulting, on May 1, 2012. The following transactions occurred during the month of May.

May	1	Carla 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 provided.
	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 provided on account on May 15.
	26	Borrowed $5,000 from the bank on a note payable.
	29	Purchased office 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 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, 2012.