On July 1st, Lucy purchased a machine that helped her create even more lip balms in less the time. This machine mixes the ingredients and puts the correct amount into the casing for Lucy 

 

* First week of July: Sold 100 balms at $4 each. Cost $1.50.

* Second week of July: Sold 150 balms at $4 each. Cost $1.50.

* Third week of July: Sold 150 balms at $4 each. Cost $1.50.

* Fourth week of July: Sold 150 balms at $4 each. Cost $1.50.

During the month of July, Lucy had the following expenses: $15 for supplies that she used immediately, $25 for delivery expenses, and $75 for miscellaneous items that came up during the month. On June 30th, Lucy found that there was $40 in cash leftover and the receipts. 
 

Based on the source documents given, prepare an Income Statement, a Statement of Retained Earnings, and a Balance Sheet (in good form).

Transcribed Image Text:

Sell To: Jucy Lucy Lip Balm Lucy Lynn 1234 Lip Lovin Lane Sold From: Machine's Inc. 468 Machinery Court Date Due Date: Item All-In-One Machine Subtotal Sales Tax Total Invoice Amount Price $5,000 Qty PAID IN FULL 7/1/2022 7/31/2022 Amount 1 $ 5,000.00 $ 5,000.00 $ $5,000.00 Sell To: Jucy Lucy Lip Balm Lucy Lynn 1234 Lip Lovin Lane Sold From: Machine's Inc. 468 Machinery Court Date Due Date: Item All-In-One Machine Subtotal Sales Tax Total Invoice Amount Price $5,000 Qty PAID IN FULL 7/1/2022 7/31/2022 Amount 1 $ 5,000.00 $ 5,000.00 $ $5,000.00

Answer rating: 100% (QA)

To create the financial statements for Lucys business Juicy Lucy Lip Balm well need to calculate revenues expenses and profit for the period Then we can prepare the Income Statement the Statement of R... View the full answer