Prepare an income statement and a statement of retained earnings for the month of May.Also,prepare a balance sheet as of May 31,2015 for Murphy Corporation.The financial transactions of Murphy Corporation for the month of May,their first month of operations,are as follows:
? On May 1, 2015, Muphy Corportion issued common stock in exchange for \$20,000 cash from a stockholder, Deborah Merchant.

? On May 3, the coporation borrowed \$5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.
? On May 7, the coporation purchased \$15,000 of equipment for cash.
? On May B, Murphy Corporation rendered service to its client and earned \$3,000 in cash.
? On May 12, the coporation incured repair expense of $\$ 1,800$ and promised to pay the repair contractor the following month.
? On May 1B, the corporation rendered service to a new client in the amount of \$B,000 on account, as the client promised to pay the following month.
? At the end of May, Murphy Corporation distributed cash dividends of $\$ 1,500$.

Question

Prepare an income statement and a statement of retained earnings for the month of May.Also,prepare a balance sheet as of May 31,2015 for Murphy Corporation.The financial transactions of Murphy Corporation for the month of May,their first month of operations,are as follows:
 ? On May 1, 2015, Muphy Corportion issued common stock in exchange for \$20,000 cash from a stockholder, Deborah Merchant.

? On May 3, the coporation borrowed \$5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.
? On May 7, the coporation purchased \$15,000 of equipment for cash.
? On May B, Murphy Corporation rendered service to its client and earned \$3,000 in cash.
? On May 12, the coporation incured repair expense of $\$ 1,800$ and promised to pay the repair contractor the following month.
? On May 1B, the corporation rendered service to a new client in the amount of \$B,000 on account, as the client promised to pay the following month.
? At the end of May, Murphy Corporation distributed cash dividends of $\$ 1,500$.

Quizplus · Accepted Answer

The Answer of Prepare an income statement and a statement of retained earnings for the month of May.Also,prepare a balance sheet as of May 31,2015 for Murphy Corporation.The financial transactions of Murphy Corporation for the month of May,their first month of operations,are as follows:
 ? On May 1, 2015, Muphy Corportion issued common stock in exchange for \$20,000 cash from a stockholder, Deborah Merchant.

? On May 3, the coporation borrowed \$5,000 from a creditor and executed a note payable with the principal and interest to be due in one year.
? On May 7, the coporation purchased \$15,000 of equipment for cash.
? On May B, Murphy Corporation rendered service to its client and earned \$3,000 in cash.
? On May 12, the coporation incured repair expense of $\$ 1,800$ and promised to pay the repair contractor the following month.
? On May 1B, the corporation rendered service to a new client in the amount of \$B,000 on account, as the client promised to pay the following month.
? At the end of May, Murphy Corporation distributed cash dividends of $\$ 1,500$.

Prepare an Income Statement and a Statement of Retained Earnings $1,800\$ 1,800$1,800

Prepare an Income Statement and a Statement of Retained Earnings $\$ 1,800$