On June 1, Cindy Godfrey started Divine Designs Co., a company that provides craft opportunities, by investing

Question:

On June 1, Cindy Godfrey started Divine Designs 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.

Service Revenue Cash $10,150 2,800 2,000 $6,500 Accounts Receivable Advertising Expense Rent Expense Gasoline Expense 50

Cindy 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, 2020.
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.

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles

ISBN: 978-1119411482

13th edition

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

Question Posted: