Question

Prepare a classified balance sheet at May 31, 2017. (List current assets in order of liquidity)

Nona Curry started her own consulting firm, Larkspur, Inc., on May 1, 2017. The following transactions occurred during the month of May.

May 1		Stockholders invested $20,550 cash in the business in exchange for common stock.
2		Paid $822 for office rent for the month.
3		Purchased $685 of supplies on account.
5		Paid $205 to advertise in the County News.
9		Received $1,918 cash for services performed.
12		Paid $274 cash dividend.
15		Performed $5,754 of services on account.
17		Paid $3,425 for employee salaries.
20		Paid for the supplies purchased on account on May 3.
23		Received a cash payment of $1,644 for services performed on account on May 15.
26		Borrowed $6,850 from the bank on a note payable.
29		Purchased office equipment for $2,740 paying $274 in cash and the balance on account.
30		Paid $247 for utilities.

Answer 1

Income statement:
Revenues
Sales revenue	$7,672
Cash-    1918
Credit-   5754
Expenses:
Office rent	$822
Advertisement	$205
Salaries	$3,425
utilities	$247
Total	$4,699
Net income	$2,973

Balance sheet:
Asset
Current assets
Cash (20550-822-205+1918-274-3425-685+1644+6850-274-247)	$25,030
Accounts receivable (5754-1644)	$4,110
Supplies	$685
Total current assets	$29,825
Equipment	$2,740
Total assets	$32,565
Liabilities and stockholders equity
Accounts payable(2740-274)	$2,466
Note payable	$6,850
Total liabilities	$9,316
Common stock	$20,550
Retained earnings (2973- Dividend, 274)	$2,699
Total stockholders equity	$23,249
Total Liabilities and stockholders equity	$32,565