5/1 Cash $ 50,000.

00
Molly, Capital $ 50,000.00
Molly invested in Mother Molly's Childcare business
5/2 Furniture $ 11,000.00
Cash $ 11,000.00
Company purchased furniture with cash
5/2 Supplies $ 1,450.00
Accounts Payable $ 1,450.00
Company purchased supplies on account
5/8 Petty Cash Fund $ 400.00
Cash $ 400.00
Company established a petty cash fund
5/12 Miscellaneous Expense $ 350.00
Accounts Payable $ 350.00
Company buys miscellaneous expense on account
5/13 Advertising $ 505.00
Cash $ 505.00
Company purchased advertising in a local newspaper using cash
5/15 Cash $ 4,000.00
Accounts Receivable $ 3,350.00
Revenue $ 7,350.00
Recording of revenues earned
5/15 Wages Expense $ 3,000.00
Social Security Tax Payable $ 186.00
Medicare Tax Payable $ 43.50
Federal Income Tax Payable $ 337.00
State Income Tax Payable $ 130.00
Life Insurance Premium Payable $ 65.00
Cash $ 2,238.50
Weekly wages earned by employees
5/15 Payroll Tax Expense $ 409.50
Social Security Tax Payable $ 186.00
Medicare Tax Payable $ 43.50
SUTA Tax Payable $ 162.00
FUTA Tax Payable $ 18.00
Payroll Taxes owed
5/17 Accounts Payable $ 800.00
Cash $ 800.00
Company pays partially for owed amount from May 2
5/19 Cash $ 1,200.00
Accounts Receivable $ 1,200.00
Cash received from customer paying on account
5/22 Cash $ 2,000.00
Unearned Revenue $ 2,000.00
Received cash for services in advance
5/23 Life Insurance premium payable $ 65.00
Cash $ 65.00
Life Insurance premium remitted
5/24 Supplies Expense $ 157.00
Postage Expense $ 83.00
Miscellaneous Expense $ 65.00
Cash $305
Company replenished petty cash fund
5/25 Cash $ 1,325.00
Accounts Receivable $ 1,325.00
Company receives cash from the revenue on May 15
5/29 Rent Expense $ 1,620.00
Cash $ 1,620.00
Company paid rent expense
5/30 Telephone Expense $ 220.00
Cash $ 220.00
Company paid for telephone expense
5/30 Electric Expense $ 315.00
Cash $ 315.00
Company paid electric expense
5/30 Wages Expense $ 3,500.00
Social Security Tax Payable $ 217.00
Medicare Tax Payable $ 50.75
Federal Income Tax Payable $ 389.00
State Income Tax Payable $ 156.00
Life Insurance Premium Payable $ 70.00
Cash $ 2,617.25
Weekly wages earned by employees
5/30 Payroll Tax Expense $ 477.75
Social Security Tax Payable $ 217.00
Medicare Tax Payable $ 50.75
SUTA Tax Payable $ 189.00
FUTA Tax Payable $ 21.00
Payroll Taxes owed
5/31 Cash $ 7,600.00
Accounts Receivable $ 1,600.00
Revenue $ 9,200.00
Recording of revenues earned
5/31 Molly, Drawing $ 4,000.00
Cash $ 4,000.00
Molly withdrew cash for personal use
 Mother Molly's Childcare
Unadjusted Trial Balance
31-May-15
Debit
Cash $ 42,039.25
Accounts Receivable $ 2,425.00
Supplies $ 1,450.00
Furniture $ 11,000.00
Petty Cash $ 400.00
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 $ 4,000.00
Service Revenue
Unearned Revenue
Miscellaneous Expense $ 415.00
Wages Expense $ 6,500.00
Payroll Tax Expense $ 887.25
Supplies Expense $ 157.00
Postage Expense $ 83.00
Rent Expense $ 1,620.00
Telephone Expense $ 220.00
Electric Expense $ 315.00
Advertising Expense $ 505.00
$ 72,016.50
 Adjusting Journal Entries
5/31 Supplies Expense $ 825.00
Supplies $ 825.00
Adjusting entry to record supplies expense
5/31 Unearned Revenue $ 750.00
Service Revenue $ 750.00
Adjusting entry to record partial payment of unearned revenue received on May 22
5/31 Accounts Receivable $ 850.00
Service Revenue $ 850.00
Adjusting entry to record provided services not yet billed
5/31 Wages Expense $ 200.00
Wages Payable $ 200.00
Adjusting entry to record employees earned wages

Mother Molly's Childcare

Adjusted Trial Balance
5/31/2015
Debit
Cash $ 42,039.25
Accounts Receivable $ 3,275.00
Supplies $ 625.00
Furniture $ 11,000.00
Petty Cash $ 400.00
Accounts Payable
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 $ 4,000.00
Service Revenue
Unearned Revenue
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
$ 73,066.50

Mother Molly's Childcare

Income Statement
For the Month Ended on May 31, 2015
Revenues:
Service Revenue $ 18,150.00
Total 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 Expense $ 11,727.25
Net Income $ 6,422.75

Mother Molly's Childcare

Statement of Owner's Equity
For the Month Ended on May 31, 2015
Molly, Capital, May 1 $ 50,000.00
Net Income $ 6,422.75
Investment $ -
$ 6,422.75
Molly, Drawing $ 4,000.00
Increase in Owner's Equity $ 2,422.75
Molly, Capital, May 31 $ 52,422.75

Mother Molly's Childcare

Balance Sheet
31-May-15
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

Recording Closing Entries

5/31 Service Revenue $ 18,150.00
Income Summary $ 18,150.00
Closing entry to close revenue account
5/31 Income Summary $ 11,727.25
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
Closing entry to close expense accounts
5/31 Income Summary $ 6,422.75
Molly, Capital $ 6,422.75
Closing entry to close Income Summary account
5/31 Molly, Capital $ 4,000.00
Molly, Drawing $ 4,000.00
Closing Entry to close withdrawal account.

Mother Molly's Childcare

Post-Closing Trial Balance
May 31,2015
Debit Credit
Cash $ 42,039.25
Accounts Receivable $ 3,275.00
Supplies $ 625.00
 Furniture $ 11,000.00
Petty Cash $ 400.00
Accounts Payable $ 1,000.00
Unearned Revenue $ 1,250.00
Wages Payable $ 200.00
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
Molly, Capital $ 52,422.75
$ 57,339.25 $ 57,339.25

Mother Molly's Childcare

Income Statement
Revenues
Service Revenue
Expenses:
Miscellaneous Expense
Wages Expense
Payroll Tax Expense
Supplies Expense
Postage Expense
Rent Expense
Telephone Expense
Electric Expense
Advertising Expense
Total Expenses
Net Income
31-May-15
Dollar Amount Percentage
$ 18,150.00 100.00%
$ 415.00 2.29%
$ 6,700.00 36.91%
$ 887.25 4.89%
$ 982.00 5.41%
$ 83.00 0.46%
$ 1,620.00 8.93%
$ 220.00 1.21%
$ 315.00 1.74%
$ 505.00 2.78%
$ 11,727.25 64.61%
$ 6,422.75 35.39%

Mother Molly's Childcare

Balance Sheet
31-May-15
Dollar Amount Percentage
Assets:
Cash $ 42,039.25 73.32%
Accounts Receivable $ 3,275.00 5.71%
Supplies $ 625.00 1.09%
Furniture $ 11,000.00 19.18%
Petty Cash $ 400.00 0.70%
Total Assets $ 57,339.25 100.00%
Liabilities:
Accounts Payable $ 1,000.00 1.74%
Wages Payable $ 200.00 0.35%
Unearned Revenue $ 1,250.00 2.18%
Social Security Tax Payable $ 806.00 1.41%
Medicare Tax Payable $ 188.50 0.33%
Federal Income Tax Payable $ 726.00 1.27%
State Income Tax Payable $ 286.00 0.50%
Life Insurance Premium Payable $ 70.00 0.12%
SUTA Tax Payable $ 351.00 0.61%
FUTA Tax Payable $ 39.00 0.07%
Owner's Equity:
Molly, Capital $ 52,422.75 91.43%
Total Liabilities & Owner's Equity $ 57,339.25 100.00%

Liquidity Ratios
Current Ratio
$ 46,339.25 9.43 to 1
$ 4,916.50

Quick Ratio
$ 45,714.25 9.30 to 1
$ 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
 Cash Molly Capital Furniture
$ 50,000 $ 11,000 $ 50,000 $ 11,000
$ 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 $ 11,000

Accounts Payable Petty Cash Miscellaneous Expense

$ 800 $ 1,450 $ 400 $ 350
$ 350 $ 65

$ 1,000 $ 400 $ 415

Accounts Receivable Service Revenue Wages Expense

$ 3,350 $ 1,200 $ 7,350 $ 3,000
$ 1,600 $ 1,325 $ 9,200 $ 3,500

$ 2,425 $ 16,550 $ 6,500

Medicare Tax Payable Federal Income Tax Payable State Income Tax Payable
$ 43.50 $ 337 $ 130
 $ 43.50 $ 389 $ 156
$ 50.75
$ 50.75

$ 188.50 $ 726 $ 286

Payroll Tax Expense SUTA Tax Payable FUTA Tax Payable

$ 409.50 $ 162 $ 18
$ 477.75 $ 189 $ 21

$ 887.25 $ 351 $ 39

Supplies Expense Postage Expense

$ 157 $ 83

$ 157 $ 83

Telephone Expense Electric Expense Molly, Drawing

$ 220 $ 315 $ 4,000

$ 220 $ 315 $ 4,000

Credit

$ 1,000
$ 806
$ 188.50
$ 726
$ 286
$ 70
$ 351
$ 39
$ 50,000

$ 16,550
$ 2,000

$ 72,016.50
 ldcare
ance

Credit

$ 1,000.00
$ 200.00
$ 806.00
$ 188.50
$ 726.00
$ 286.00
$ 70.00
$ 351.00
$ 39.00
$ 50,000.00

$ 18,150.00
$ 1,250.00
$ 73,066.50
 Supplies
$ 1,450
$ 1,450

Advertising
$ 505

$ 505

Social Security Tax Payable

$ 186
$ 186
$ 217
$ 217

$ 806

Life Insurance Premium Payable

$ 65 $ 65
 $ 70

$ 70

Unearned Revenue
$ 2,000

$ 2,000

Rent Expense
$ 1,620

$ 1,620