Prepare income statement and statement of retained earnings

Assignment Help Accounting Basics
Reference no: EM133053349

Question - Prepare an income statement and a statement of retained earnings for the month of May. Also, prepare a balance sheet as of May 31, 2005, for ABC Corporation. The financial transactions of ABC Corporation for the month of May, their first month of operations, are as follows:

On May 1, 2005, ABC Corporation issued common stock in exchange for $20,000 cash from a stockholder, Mr. Jonathan.

On May 3, the corporation borrowed $5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.

On May 7, the corporation purchased $15,000 of equipment for cash.

On May 8, ABC Corporation rendered service to a client and earned $3,000 in cash.

On May 12, the corporation incurred a repair expense of $1,800 and promised to pay the repair contractor the following month.

On May 18, the corporation rendered service to a new client in the amount of $8,000 on account, as the client promised to pay the following month.

At the end of May, ABC Corporation distributed cash dividends of $1,500.

Reference no: EM133053349

Questions Cloud

Explain strategic risk : You are a risk manager for a government agency that collects confidential health information from your clients. The governing board is concerned about the poten
Intellectual property includes copyrights-trademarks : Intellectual property includes copyrights, trademarks, patents and trade secrets. For each of these four intellectual properties
Tragedy on mount everest case : For this assignment, you are required to conduct an analysis of the Tragedy on Mount Everest case (end of chapter 6) from the Self-Leadership: The Definitive Gu
Determine the total monthly fixed cost : The owner, Kenneth Muffler, asked you to assist him in estimating his maintenance costs. Determine the total monthly fixed cost
Prepare income statement and statement of retained earnings : Prepare an income statement and a statement of retained earnings for the month of May. Also, prepare a balance sheet as of May 31, 2005, for ABC Corporation
Identify and work with a professional financial advisor : You have now successfully finished your academic program requirements and graduated from George Brown College. Even better, you have found an employer who recog
Create a business requirement document : Create a business requirement document for an analytic project using experiences from your professional life.
Conduct an evaluation of the vision and mission : Use all of the tools necessary to conduct an evaluation of the vision and mission of the company or organization you have chosen.
How is public policy-making a responsibility shared : How is public policy-making a responsibility shared by all three branches of government?

Reviews

Write a Review

Accounting Basics Questions & Answers

  The company has a backlog of orders that is large enough to

heritage company manufactures a beautiful bookcase that enjoys widespread popularity. the company has a backlog of

  Prepare journal to record the dividends received from sleep

On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. Prepare the journal to record the dividends received from sleep

  Journalize the following merchandise transactions

Journalize the following merchandise transactions. Refer to the Chart of Accounts for exact wording of account titles.

  Prepare a schedule computing estimated lower of cost

Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2021

  Compute the companywide break-even point in dollar sales

Compute the companywide break-even point in dollar sales? (Round intermediate calculations to 3 decimal places and final answer to the nearest whole dollar).

  Record the journal entry for the provision for collectible

record the journal entry for the provision for collectible account under each of the following independent assumption.

  Compute the NPV of the new system

Newmarge Products Inc. is evaluating a new design for one of its manufacturing processes. Compute the NPV of the new system

  Why the auditor of enron did not detect the fraud

Which of the three conditions do you think have been the most prevalent at Enron's case and why? Why the auditor of Enron did not detect the fraud?

  Determine the book value per share of common stock

The preferred stock was noncumulative and had a call price of $102. Use this information to determine the book value per share of Common Stock

  The financial statements can be found at the company''s

1.Macy's, Inc. , operates about 810 Macy's department stores and furniture galleries.

  How much should MIRANDA report as gain

Under such agreement, the P5 million is payable after 3 years with 10% interest. How much should MIRANDA report as gain

  What amount of revenue should shown on the income statement

Bailey Company bills credit customers $52,400 for services rendered. What amount of revenue should be shown on the income statement for the year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd