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 | $10,150 | Service Revenue | $6,500 |
| Accounts Receivable | $2,800 | Advertising Expense | $500 |
| Suplies | $2,000 | Rent Expense | $1,600 |
| Equipment | $10,000 | Gasoline Expense | $200 |
| Notes Payable | $9,000 | Utilities Expense | $150 |
| Accounts Payable | $1,200 | Â | Â |
Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.
Instructions
- Prepare an income statement and owner's equity statement for the month of June and a balance sheet at June 30, 2018
- 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
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(i)
(ii)
