Question

On June 1, Tamara Eder started Crazy Creations Co., a company that provides craft opportunities, by investing $12,000 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
Accounts Receivable ........ 3,000
Supplies ............. 2,000
Equipment ............ 10,000
Notes Payable ............ 9,000
Accounts Payable ......... 1,200
Service Revenue ........... $6,700
Advertising Expense ........ 500
Rent Expense ........... 1,600
Gasoline Expense ........... 200
Utilities Expense .......... 150

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

Instructions
(a) Prepare an income statement and owner’s equity statement for the month of June and a balance sheet at June 30, 2014.
(b) 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.



$1.99
Sales15
Views1192
Comments0
  • CreatedJanuary 30, 2014
  • Files Included
Post your question
5000