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Oneschuk Contractors Corporation had the following transactions during its first month of operation ended May 31, 2015:
May 1 Issued share capital for $5,000 cash
1 Paid $1,500 for three months’ rent in advance: May, June, and
July (recorded as prepaid rent)
2 Purchased $1,000 of supplies on credit (recorded as unused supplies)
3 Billed a customer $1,500 for repairs performed
4 Paid $50 for an advertizement in The Daily Bugle
5 Received $250 cash for contracting work completed today
10 Collected the amount billed on May 3
15 Paid $500 to a creditor
18 Borrowed $2,000 cash from the bank
20 Signed a contract for $10,000 work to be done in June
22 Purchased $3,000 of equipment; paid cash
25 Billed customers $3,500 for work completed to date
27 Paid the following expenses: electricity, $75; telephone, $25; wages, $2,000
31 Transferred the amount of May’s rent from prepaid rent to rent expense ($500)
31 Counted $200 of supplies still on hand; the rest had been used during May.
1. Open general ledger T-accounts for the following (account numbers are indicated in brackets): Cash (101), Accounts Receivable (110), Prepaid Rent (162), Unused Supplies (173), Equipment (183), BankLoan (201), Accounts Payable (210), Share Capital (320), Repair Revenue (450), Advertizing Expense (610), Rent Expense (654), Supplies Expense (668), Telephone Expense (669), Utilities Expense (676), and Wages Expense (677).
2. Prepare journal entries to record the May transactions, including account numbers.
3. Post the journal entries to the T-accounts. Total each account.
4. Prepare a trial balance at May 31, 2015. Ensure total debits equals total credits.
5. Prepare an interim income statement and statement of changes in equity for the month ended May 31, 2015 and an interim balance sheet at May 31, 2015.