Gordon Beckham started his own delivery service, Beckham Deliveries, on June 1, 2012. The following transactions occurred

Question:

Gordon Beckham started his own delivery service, Beckham Deliveries, on June 1, 2012.

The following transactions occurred during the month of June.

June 1 Gordon invested $10,000 cash in the business.

2 Purchased a used van for deliveries for $12,000. Gordon paid $2,000 cash and signed a note payable for the remaining balance.

3 Paid $500 for office rent for the month.

5 Performed $4,400 of services on account.

9 Withdrew $200 cash for personal use.

12 Purchased supplies for $150 on account.

15 Received a cash payment of $1,250 for services provided on June 5.

17 Purchased gasoline for $200 on account.

20 Received a cash payment of $1,300 for services provided.

23 Made a cash payment of $600 on the note payable.

26 Paid $250 for utilities.

29 Paid for the gasoline purchased on account on June 17.

30 Paid $1,000 for employee salaries.

Instructions

(a) Show the effects of the previous transactions on the accounting equation using the following format.

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(b) Prepare an income statement for the month of June.(c) Prepare a balance sheet at June 30,2012.

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...
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Accounting Principles

ISBN: 978-0470534793

10th Edition

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

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