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.



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  • CreatedFebruary 17, 2014
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