Blushe Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with

Question:

Blushe Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $22,000 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.

Cash .......... $ 8,000

Notes Payable ...... $13,000

Accounts Receivable ..... 4,000

Accounts Payable ....... 1,400

Service Revenue ......5,300

Rent Expense ....... 1,200

Supplies ......... 1,300

Gasoline Expense ...... 600

Advertising Expense ..... 500

Utilities Expense ........ 300

Equipment ........ 25,000

Stockholders made no additional investments in June. The company paid a cash dividend of $800 during the month.

Instructions

(a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2015.

(b) Prepare an income statement and a retained earnings statement for June assuming the following data are not included above:

(1) $800 worth of services were performed and billed but not collected at June 30, and

(2) $100 of gasoline expense was incurred but not paid.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...