In: Accounting
Date | |
May-01 | Collected $1900 cash from customer accounts receivable |
May-02 | Purchased supplies on account that cost $360 |
May-07 | Recorded services of catering to customers and cash receipts were $610 and invoices for services on account were $1800 |
May-08 |
Received $700 cash as an advance payment on April 9 from a client to be served in May and completed the job on 8th Ma. |
May-10 | Paid the utility company for the monthly utility bills that had been received in the previous month, $340 |
May-15 | Paid $1800 cash for employee salaries |
May-15 | Purchased a one-year insurance policy for $1200 on the refrigerator |
May-16 | Paid $220 on the account payable that was established when supplies were purchased on May 2. |
May-20 | Paid a $400cash dividend to the stockholders |
May-27 | Received monthly utility bills amounting to $360. The bills would be paid in the month of June |
May-31 | Recorded revenues to customers. Cash receipts were $900, and invoices for sales on account were $1400 |
May-31 | Paid $1800 cash for employee salaries |
Prepare an income statement for May
we will first journalize
debit | credit | |||
May 01 | cash | 1900 | ||
account receivable | 1900 | |||
May 02 | supplies | 360 | ||
Account payable | 360 | |||
May 07 | cash | 610$ | ||
account receivable | 1190 | [1800-610] | ||
services of catering | $1800 | |||
May 08 | unearned service revenue | $700 | ||
service revenue | $700 | |||
May 10 | utility bills payable | $340 | ||
cash | $340 | |||
May 15 | salaries | 1800 | ||
cash | 1800 | |||
May 15 | insurance | 100 | [1200/12months]*may month | |
prepaid insurance | 1100 | prepaid for 11 months | ||
cash | 1200 | |||
May 16 | account payable | 220 | ||
cash | 220 | |||
May 20 | dividend | 400 | ||
cash | 400 | |||
May 27 | utility expense | 360 | ||
utility payable | 360 | |||
May 31 | cash | 900 | ||
account receivable | 500 | |||
service revenue | 1400 | |||
May 31 | salaries | 1800 | ||
cash | 1800 | |||
only entry that will affect income statement are May 07, May 08 , May 15 , May 15,May 27, May 31, May 31
income statement for May
Working | ||
service revenue | 3900$ | 1800+700+1400] |
Less: expenses | ||
Salaries | 3600$ | 1800+1800 |
utility expense | 360$ | |
Insurance | 100$ | |
Total expenses | 4060 | |
Ne income(Loss) | (160) | [3900-4060] |