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

Question:

Divine Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $26,200 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.

Divine Cosmetics Co., a company that provides individual skin ca

Stockholders made no additional investments in June. The company paid a cash dividend of $1,200 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, 2011.
(b) Prepare an income statement and a retained earnings statement for June assuming the following data are not included above:
(1) $800 of revenue was earned and billed but not collected at June 30, and
(2) $100 of gas and oil expense was incurred but notpaid.

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...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0470507018

7th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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