On June 1 you begin an ocean tour business for the summer by contributing $600 of contributed

Question:

On June 1 you begin an ocean tour business for the summer by contributing $600 of contributed capital and borrowing $600 from your parents. With your money, you pay $480 in June to rent a boat and supplies consisting of snorkels, fins, masks, and life jackets. You also purchase advertising in a local paper for $25 and gasoline for $135. You decide to charge $25 per passenger. At the end of the month of June, you have serviced 240 customers and purchased and used an additional $200 in gasoline. Included in those 240 customers were two neighbors who promised future payment which you have not received (totaling $225). You also pay your parents $5 for monthly interest.
Required
Prepare an income statement and a statement of retained earnings for the month ending June 30 and a at June 30.
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...