jane kent is a licensed cpa. during the first month of operations of

P2-2A Jane Kent is a licensed CPA. During the first month of operations of her business, Jane Kent, Inc., the following events and transactions occurred.

May 1 Stockholders invested $25,000 cash in exchange for common stock.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $2,500 of supplies on account from Read Supply Company.

7 Paid office rent of $900 cash for the month.

11 Completed a tax assignment and billed client $2,100 for services provided.

12 Received $3,500 advance on a management consulting engagement.

17 Received cash of $1,200 for services completed for H. Arnold Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 40% of balance due Read Supply Company. Jane uses the following chart of accounts:

No. 101

Cash, No. 112

Accounts Receivable, No. 126

Supplies,No. 201

Accounts Payable,No. 205

Unearned Revenue,No. 311

Common Stock,No. 400

Service Revenue, No. 726

Salaries Expense, and No. 729

Rent Expense  

Totals 

 

Write a message of 250 to 400 words in the body of your posting that justifies what you did in Appendix C. This message constitutes part d of the assignment. Address your message to your creditors and explain: 

o The general goals of financial reporting 

o The steps you took in the recording process 

o How the steps you took support the principles of accounting 

 

 

• Post your message and the completed Appendix C as an attachment.

 

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