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:
Cash, No. 112
Accounts Receivable, No. 126
Accounts Payable,No. 205
Unearned Revenue,No. 311
Common Stock,No. 400
Service Revenue, No. 726
Salaries Expense, and No. 729
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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