# The Accounting Equation and Business Essay

675 Words3 Pages
Module 1 Assignment: Bill Smith opened Smith Construction on April 1, 2010. The following amounts summarize the transactions and financial position of Smith construction as of May 31. During May the following transactions occurred: 1-May Smith received \$10,000 as an inheritance and used it to buy stock in the company. 7-May Smith paid his accounts payable balance. 15-May Smith replaced some windows for a client and received \$5,000 cash for his services 17-May Smith collected \$1,200 from a customer for a job performed in April 20-May Smith purchased supplies for \$1,000 on account…show more content…
\$13,440.00 + \$3,280.00 + \$1,000.00 + \$24,000.00 = \$1,000.00 + \$36,000.00 + \$10,900.00 - \$3,780.00 - \$1,000.00 - \$1,400.00 2 Prepare the Income Statement for the month of May for Smith Construction. Smith Construction Income Statement For the Month Ended May 31, 2010 Revenues: Service Revenue: \$10,900 Expenses: Rent Expense: -\$1,000 Salary