Refer to exercise E2-24, In to exercise E2-24 a. In the month of May 2017, Sonia Rothesay opened an accounting firm by
Refer to exercise E2-24,
In to exercise E2-24
a. In the month of May 2017, Sonia Rothesay opened an accounting firm by investing
$10,000 cash and office furniture valued at $5,000. Organized as a professional corporation, the business issued common shares to Rothesay.
b. Paid monthly rent of $1,600.
c. Purchased office supplies on account, $600.
d. Paid employees' salaries of $2,000.
e. Paid $200 of the account payable created in transaction (c).
f. Performed accounting service on account, $12,100.
g. Declared and paid dividends of $2,000.
1. After recording the transactions in exercise E2-24, prepare the trial balance of Sonia Rothesay, Accountant, at May 31, 2017.
2. How well did the business perform during its first month? Give the basis for your answer.