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Mathematics, 25.07.2020 07:01 aaronpmoore1010
Benito Mendez opened Mendez Appraisals. He rented office space and has a part-time secretary to answer the phone and make appraisal appointments. 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 phone 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--.
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