Accounting in Action

On June 1, Cindy Godfrey started Divine Designs Co., a company that provides cash opportunities by investing $12000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June


Cash$10,150Service Revenue$6,500
Accounts Receivable$2,800Advertising Expense$500
Suplies$2,000Rent Expense$1,600
Equipment$10,000Gasoline Expense$200
Notes Payable$9,000Utilities Expense$150
Accounts Payable$1,200


Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.

Instructions

  1. Prepare an income statement and owner's equity statement for the month of June and a balance sheet at June 30, 2018
  2. Prepare an income statement and owner's equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.

Solution

content will update on August 19

(i)
(ii)

Problems: Accounting in Action

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Problem-3: Accounting in Action

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