Starting in June, Sensations Salon, Inc., began selling its own brand of shampoo that it purchases from a wholesaler. During June, Sensations Salon, Inc., completed the following transactions:

Jun 2 Completed styling services and received cash of $385.

5 Purchased 10 bottles of shampoo on account for inventory, $175, plus freight-in of $5. Freight-in was added to the invoice by tile seller. Credit terms were n130.

15 Sold 7 bottles of shampoo on account. $196 (cost $126).

17 Performed styling services on account for $435.

20 Purchased 12 bottles of shampoo on account for inventory, $228.

21 Paid on account, $1,950.

25 Sold 5 bottles of shampoo for cash, $140 (cost $92).

30 Recorded the following adjusting entries:

Accrued salaries for the month of June equal $240

Depreciation on equipment $53

Supplies used during June were $23

Physical count of shampoo inventory, 9 bottles (cost $171)

Refer to the T-accounts for Sensations Salon, Inc., from the Continuing Exercise in Chapter 3. Use the ending balances on May 31 to set up T-accounts for the month of June.

Requirements

1. Journalize and post the June transactions to the T-accounts. Omit explanations. Compute each account balance, and denote the balance as Bal. Open additional accounts as necessary.

2. Prepare the June income statement of Sensations Salon, Inc., using the single-step format?