Madame Shira Began a Fortune Telling Business on May 1 $\$ 5,000$

Essay

Madame Shira began a fortune telling business on May 1.The following transactions occurred:
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1. Owner Madame Shira invested $\$ 5,000$ cash in the business.
2. Purchased $\$ 2,000$ of furniture with a down payment of $\$ 500$ ; the rest by issuing an account payable to be paid in three monthly installments.
3. Paid $\$ 700$ rent.
4. Purchased a crystal ball for $\$ 300$ .
5. Paid $\$ 1,700$ for a 12 -month insurance policy.
6. During the first month received $\$ 2,500$ from cash customers.
7. Sent billings of $\$ 2,000$ for services rendered to credit customers.
8. Paid assistant $\$ 1,500$ wages for the month.
9. Received $\$ 600$ in payments from credit customers.
10. Borrowed $\$ 3,200$ by signing a note.
11. Made a $\$ 500$ payment on the furniture bill (from transaction 2).
12. Owner withdrew $\$ 300$ cash for personal use.
13. Paid bills for advertising $\$ 60$ , utilities $\$ 39$ , and repairs $\$ 52$ . Required:
1.Enter the above transactions in an accounting equation work sheet.
2.Prepare an income statement for Madame Shira for the month of May.
3.Prepare a statement of owner's equity for the month of May.