On May 1, 2015, Deborah Merchant Started Deborah's Launderette by Investing

Essay

On May 1, 2015, Deborah Merchant started Deborah's Launderette by investing $20,000. On May 3, the business 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 business purchased $15,000 of equipment for cash. On May 8, Deborah's Launderette rendered service to its first client and earned $3,000 in cash. On May 12, Deborah incurred repair expense of $1,800 and promised to pay the repair contractor the following month. On May 18, Deborah rendered service to a new client in the amount of $8,000 on account, as the client promised to pay the following month. At the end of May, Deborah took a withdrawal of $1,500. Prepare an income statement for the month of May, a statement of owner's equity for the month of May, and a balance sheet as of May 31, 2015.