Question: Doreen Dunst started an interior design company called Interiors by

Doreen Dunst started an interior design company called Interiors by Doreen, Inc., on June 1, 2012. The following amounts summarize the financial position of her business on June 14, 2012, after the first two weeks of operations:

During the remainder of June, the following events occurred:
a. Dunst received $16,000 as a gift and used it to buy common stock in the business.
b. Paid off the beginning balance of Accounts Payable.
c. Performed services for a client and received cash of $2,000.
d. Collected cash from a customer on account, $1,100.
e. Purchased supplies on account, $750.
f. Consulted on the interior design of a major office building and billed the client for services performed, $7,000.
g. Sold an additional $5,000 of common stock in the business.
h. Incurred and paid salaries of $2,200.
i. Sold supplies at cost to another interior designer for $200 cash.
j. Paid dividends of $900 to Dunst.


Requirements
1. Enter the remaining transactions for the month of June into the expanded accounting equation, calculating new balances after each transaction.
2. Prepare the income statement of Interiors by Doreen, Inc., for the month ended June 30, 2012.
3. Prepare the statement of retained earnings of Interiors by Doreen, Inc., for the month ended June 30, 2012.
4. Prepare the balance sheet of Interiors by Doreen, Inc., at June 30,2012.
View Solution:


Sale on SolutionInn
Sales0
Views195
Comments
  • CreatedApril 29, 2014
  • Files Included
Post your question
5000