Trafflet Enterprises incorporated on May 3, 2019. The company engaged in the following transactions during the first month of its operations:

 Trafflet Enterprises incorporated on May 3, 2019. The company engaged in the following transactions during the first month of its operations:

 

1. Owner invested capital in form of $800,000 cash.
2. Paid May office rent of $1,000.
3. Purchased office supplies for $400 cash. Supplies will last for several months.
4. Purchased office equipment for $8,000 on account. The entire amount is due June 15.
5. Purchased a company car for $27,000. Paid $7,000 cash & issued a note for remaining amount.
6. Billed clients $32,000 on account.
7. $5,000 has been used for owner’s personal expenditures which he thinks will be reinvested in the future years when he earns enough money from the business.
8. Paid May utilities of $200.
9. Received $30,000 from clients billed in the earlier transaction (f).
10. Recorded and paid salary expense of $14,000.

 Requirements: 

Record the company’s May transactions in general journal form.  

 

Post each entry to the appropriate ledger accounts.

 

 

 

Prepare a Trial Balance dated May 31, 2019.

Prepare an Income Statement for the month of May, 2019.

 

Prepare a Balance Sheet on May 31, 2019.