5/1 Cash

Molly, Capital
Molly invested in Mother Molly's Childcare business
5/2 Furniture
Cash
Company purchased furniture with cash
5/2 Supplies
Accounts Payable
Company purchased supplies on account
5/8 Petty Cash Fund
Cash
Company established a petty cash fund
5/12 Miscellaneous Expense
Accounts Payable
Company buys miscellaneous expense on account
5/13 Advertising
Cash
Company purchased advertising in a local newspaper using cash
5/15 Cash
Accounts Receivable
Revenue
Recording of revenues earned
5/15 Wages Expense
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
Cash
Weekly wages earned by employees
5/15 Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
SUTA Tax Payable
FUTA Tax Payable
Payroll Taxes owed
5/17 Accounts Payable
Cash
Company pays partially for owed amount from May 2
5/19 Cash
Accounts Receivable
Cash received from customer paying on account
5/22 Cash
Unearned Revenue
 Received cash for services in advance
5/23 Life Insurance premium payable
Cash
Life Insurance premium remitted
5/24 Supplies Expense
Postage Expense
Miscellaneous Expense
Cash
Company replenished petty cash fund
5/25 Cash
Accounts Receivable
Company receives cash from the revenue on May 15
5/29 Rent Expense
Cash
Company paid rent expense
5/30 Telephone Expense
Cash
Company paid for telephone expense
5/30 Electric Expense
Cash
Company paid electric expense
5/30 Wages Expense
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
Cash
Weekly wages earned by employees
5/30 Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
SUTA Tax Payable
FUTA Tax Payable
Payroll Taxes owed
5/31 Cash
Accounts Receivable
Revenue
Recording of revenues earned
5/31 Molly, Drawing
Cash
Molly withdrew cash for personal use
 Mother Molly's Childcare
Unadjusted Trial Balance
31-May-15

Cash
Accounts Receivable
Supplies
Furniture
Petty Cash
Accounts Payable
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
SUTA Tax Payable
FUTA Tax Payable
Molly, Capital
Molly, Drawing
Service Revenue
Unearned Revenue
Miscellaneous Expense
Wages Expense
 Payroll Tax Expense
Supplies Expense
Postage Expense
Rent Expense
Telephone Expense
Electric Expense
Advertising Expense

Adjusting Journal Entries

5/31 Supplies Expense $ 825.00
Supplies
Adjusting entry to record supplies expense
5/31 Unearned Revenue $ 750.00
Service Revenue
Adjusting entry to record partial payment of unearned revenue received on May 22
5/31 Accounts Receivable $ 850.00
Service Revenue
Adjusting entry to record provided services not yet billed
5/31 Wages Expense $ 200.00
Wages Payable
Adjusting entry to record employees earned wages

Mother Molly's Chi

Adjusted Trial Ba
5/31/2015

Cash
Accounts Receivable
Supplies
Furniture
Petty Cash
Accounts Payable
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
SUTA Tax Payable
FUTA Tax Payable
Molly, Capital
Molly, Drawing
Service Revenue
Unearned Revenue
Miscellaneous Expense
Wages Expense
Payroll Tax Expense
Supplies Expense
Postage Expense
Rent Expense
Telephone Expense
Electric Expense
Advertising Expense

Mother Molly's Childcare

Income Statement
For the Month Ended on May 31, 2015
Revenues:
Service Revenue
Total Revenue

Expenses:
Miscellaneous Expense
Wages Expense
Payroll Tax Expense
Supplies Expense
Postage Expense
Rent Expense
Telephone Expense
Electric Expense
Advertising Expense
Total Expense
Net Income

Mother Molly's Childcare

Statement of Owner's Equity
For the Month Ended on May 31, 201
Molly, Capital, May 1
Net Income
Investment

Molly, Drawing
Increase in Owner's Equity
Molly, Capital, May 31

Mother Molly's Childcare

 Balance Sheet
31-May-15
Assets:
Cash
Accounts Receivable
Supplies
Furniture
Petty Cash
Total Assets
Liabilities:
Accounts Payable
Wages Payable
Unearned Revenue
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
SUTA Tax Payable
FUTA Tax Payable
Owner's Equity:
Molly, Capital
Total Liabilities & Owner's Equity

Recording Closing Entries

5/31 Service Revenue $ 18,150.00
Income Summary
Closing entry to close revenue account
5/31 Income Summary $ 11,727.25
Miscellaneous Expense
Wages Expense
Payroll Tax Expense `
Supplies Expense
Postage Expense
Rent Expense
Telephone Expense
Electric Expense
Advertising Expense
Closing entry to close expense accounts
5/31 Income Summary $ 6,422.75
Molly, Capital
Closing entry to close Income Summary account
5/31 Molly, Capital $ 4,000.00
Molly, Drawing
 Closing Entry to close withdrawal account.

Mother Molly's Childcare

Post-Closing Trial Balance
May 31,2015
Debit
Cash $ 42,039.25
Accounts Receivable $ 3,275.00
Supplies $ 625.00
Furniture $ 11,000.00
Petty Cash $ 400.00
Accounts Payable
Unearned Revenue
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Federal Income Tax Payable
State Income Tax Payable
Life Insurance Premium Payable
SUTA Tax Payable
FUTA Tax Payable
Molly, Capital
$ 57,339.25

Mother Molly's Childcare

Income Statement
31-May-15
Dollar Amount
Revenues
Service Revenue $ 18,150.00
Expenses:
Miscellaneous Expense $ 415.00
Wages Expense $ 6,700.00
Payroll Tax Expense $ 887.25
Supplies Expense $ 982.00
Postage Expense $ 83.00
Rent Expense $ 1,620.00
Telephone Expense $ 220.00
Electric Expense $ 315.00
Advertising Expense $ 505.00
Total Expenses $ 11,727.25
Net Income $ 6,422.75

Mother Molly's Childcare

Balance Sheet
31-May-15
Dollar Amount
Assets:
Cash $ 42,039.25
Accounts Receivable $ 3,275.00
Supplies $ 625.00
Furniture $ 11,000.00
Petty Cash $ 400.00
Total Assets $ 57,339.25
Liabilities:
Accounts Payable $ 1,000.00
Wages Payable $ 200.00
Unearned Revenue $ 1,250.00
Social Security Tax Payable $ 806.00
Medicare Tax Payable $ 188.50
Federal Income Tax Payable $ 726.00
State Income Tax Payable $ 286.00
Life Insurance Premium Payable $ 70.00
SUTA Tax Payable $ 351.00
FUTA Tax Payable $ 39.00
Owner's Equity:
Molly, Capital $ 52,422.75
Total Liabilities & Owner's Equity $ 57,339.25

Liquidity Ratios
Current Ratio
$ 46,339.25 9.43
$ 4,916.50

Quick Ratio
$ 45,714.25 9.30
$ 4,916.50

Solvency Ratios
Debt Ratio
$ 4,916.50 8.57%
$ 57,339.25

Equity Ratio
$ 52,422.75 91.43%
$ 57,339.25

Debt-to-Equity Ratio
$ 4,916.50 0.09
$ 52,422.75

Profitability Ratios
Profit Margin
$ 6,422.75 35.39%
$ 18,150.00

Return on Assets
$ 6,422.75 11.20%
$ 57,339.25
$ 50,000.00
$ 50,000.00

$ 11,000.00
$ 11,000.00

$ 1,450.00
$ 1,450.00

$ 400.00
$ 400.00

$ 350.00
$ 350.00

$ 505.00
$ 505.00

$ 4,000.00
$ 3,350.00
$ 7,350.00

$ 3,000.00
$ 186.00
$ 43.50
$ 337.00
$ 130.00
$ 65.00
$ 2,238.50

$ 409.50
$ 186.00
$ 43.50
$ 162.00
$ 18.00

$ 800.00
$ 800.00

$ 1,200.00
$ 1,200.00

$ 2,000.00
$ 2,000.00
$ 65.00
$ 65.00

$ 157.00
$ 83.00
$ 65.00
$305

$ 1,325.00
$ 1,325.00

$ 1,620.00
$ 1,620.00

$ 220.00
$ 220.00

$ 315.00
$ 315.00

$ 3,500.00
$ 217.00
$ 50.75
$ 389.00
$ 156.00
$ 70.00
$ 2,617.25

$ 477.75
$ 217.00
$ 50.75
$ 189.00
$ 21.00

$ 7,600.00
$ 1,600.00
$ 9,200.00

$ 4,000.00
$ 4,000.00
 Cash Molly Capital
$ 50,000 $ 11,000 $ 50,000
$ 4,000 $ 400
$ 1,200 $ 505
$ 2,000 $ 2,238.50
$ 1,325 $ 800
$ 7,600 $ 65
$ 1,620
$ 220
$ 315
$ 2,617.25
$ 4,000
$ 305
$ 42,039.25 $ 50,000

Accounts Payable Petty Cash

$ 800 $ 1,450 $ 400
$ 350

$ 1,000 $ 400

Accounts Receivable Service Revenue

$ 3,350 $ 1,200 $ 7,350
$ 1,600 $ 1,325 $ 9,200
$ 2,425 $ 16,550

Medicare Tax Payable Federal Income Tax Payable

$ 43.50 $ 337
$ 43.50 $ 389
$ 50.75
$ 50.75

$ 188.50 $ 726

Payroll Tax Expense SUTA Tax Payable

$ 409.50 $ 162
$ 477.75 $ 189

$ 887.25 $ 351

Supplies Expense Postage Expense

$ 157 $ 83
 $ 157 $ 83

Telephone Expense Electric Expense

$ 220 $ 315

$ 220 $ 315

Mother Molly's Childcare

Unadjusted Trial Balance
31-May-15
Debit Credit
$ 42,039.25
$ 2,425.00
$ 1,450.00
$ 11,000.00
$ 400.00
$ 1,000
$ 806
$ 188.50
$ 726
$ 286
$ 70
$ 351
$ 39
$ 50,000
$ 4,000.00
$ 16,550
$ 2,000
$ 415.00
$ 6,500.00
 $ 887.25
$ 157.00
$ 83.00
$ 1,620.00
$ 220.00
$ 315.00
$ 505.00
$ 72,016.50 $ 72,016.50

###

###
ceived on May 22

###

###

Mother Molly's Childcare

Adjusted Trial Balance
5/31/2015
Debit Credit
$ 42,039.25
$ 3,275.00
$ 625.00
$ 11,000.00
$ 400.00
$ 1,000.00
$ 200.00
$ 806.00
$ 188.50
$ 726.00
$ 286.00
$ 70.00
$ 351.00
$ 39.00
$ 50,000.00
$ 4,000.00
$ 18,150.00
 $ 1,250.00
$ 415.00
$ 6,700.00
$ 887.25
$ 982.00
$ 83.00
$ 1,620.00
$ 220.00
$ 315.00
$ 505.00
$ 73,066.50 $ 73,066.50

r Molly's Childcare
ome Statement
h Ended on May 31, 2015

$ 18,150.00
$ 18,150.00

$ 415.00
$ 6,700.00
$ 887.25
$ 982.00
$ 83.00
$ 1,620.00
$ 220.00
$ 315.00
$ 505.00
$ 11,727.25
$ 6,422.75

r Molly's Childcare
ent of Owner's Equity
th Ended on May 31, 2015
$ 50,000.00
$ 6,422.75
$ -
$ 6,422.75
$ 4,000.00
$ 2,422.75
$ 52,422.75

r Molly's Childcare
alance Sheet
31-May-15

$ 42,039.25
$ 3,275.00
$ 625.00
$ 11,000.00
$ 400.00
$ 57,339.25

$ 1,000.00
$ 200.00
$ 1,250.00
$ 806.00
$ 188.50
$ 726.00
$ 286.00
$ 70.00
$ 351.00
$ 39.00

$ 52,422.75
er's Equity $ 57,339.25

$ 18,150.00

$ 415.00
$ 6,700.00
$ 887.25
$ 982.00
$ 83.00
$ 1,620.00
$ 220.00
$ 315.00
$ 505.00

$ 6,422.75

$ 4,000.00
Credit

$ 1,000.00
$ 1,250.00
$ 200.00
$ 806.00
$ 188.50
$ 726.00
$ 286.00
$ 70.00
$ 351.00
$ 39.00
$ 52,422.75
$ 57,339.25

Percentage

100.00%

2.29%
36.91%
4.89%
5.41%
0.46%
8.93%
1.21%
1.74%
2.78%
64.61%
 35.39%

Percentage

73.32%
5.71%
1.09%
19.18%
0.70%
100.00%

1.74%
0.35%
2.18%
1.41%
0.33%
1.27%
0.50%
0.12%
0.61%
0.07%

91.43%
100.00%

to 1

to 1
 Furniture Supplies
$ 11,000 $ 1,450

$ 11,000 $ 1,450

Miscellaneous Expense Advertising

$ 350 $ 505
$ 65

$ 415 $ 505

Wages Expense Social Security Tax Payable

$ 3,000 $ 186
$ 3,500 $ 186
$ 217
$ 217
$ 6,500 $ 806

State Income Tax Payable Life Insurance Premium Payable

$ 130 $ 65 $ 65
$ 156 $ 70

$ 286 $ 70

FUTA Tax Payable Unearned Revenue

$ 18 $ 2,000
$ 21

$ 39 $ 2,000

Rent Expense
$ 1,620
 $ 1,620

Molly, Drawing
$ 4,000

$ 4,000