Problem 3.5A (Static) Preparing financial statements from T accounts. LO 3-3, 3-5, 3-6

The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month.

Transactions:

1. Sutton invested $90,000 in cash to start the business.
2. Paid $6,000 for the current months rent.
3. Bought office furniture for $10,580 in cash.
4. Performed services for $8,200 in cash.
5. Paid $1,250 for the monthly telephone bill.
6. Performed services for $14,000 on credit.
7. Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
8. Received $7,000 from credit clients.
9. Paid $2,800 in cash for office cleaning services for the month.
10. Purchased additional office chairs for $5,800; received credit terms of 30 days.
11. Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
12. Issued a check for $9,400 to pay salaries.
13. Performed services for $14,500 in cash.
14. Performed services for $16,000 on credit.
15. Collected $8,000 on accounts receivable from charge customers.
16. Issued a check for $2,900 in partial payment of the amount owed for office chairs.
17. Paid $725 to a duplicating company for photocopy work performed during the month.
18. Paid $1,280 for the monthly electric bill.
19. Sutton withdrew $5,500 in cash for personal expenses.

Required: Prepare a trial balance, an income statement, a statement of owners equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 20X1. Determine the account balances before you start work on the financial statements.

Analyze: What is the change in owners equity for the month of June?

Complete this question by entering your answers in the tabs below.

• Trial Balance
• Income Statement
• Stmt of Owners Eqty
• Balance Sheet
• Analyze

Determine the account balances and prepare a trial balance for the month ended June 30, 20X1.

VINCENT SUTTON, LANDSCAPE CONSULTANT
Trial Balance
June 30, 20X1
Account Name	Debit	Credit
Total	$0	$0

• Prepare an income statement for the month ended June 30, 20X1.

  VINCENT SUTTON, LANDSCAPE CONSULTANT
  Income Statement
  Month Ended June 30, 20X1
  Revenue
  Expenses
  Total expenses		0
  		$0

• Prepare a statement of owners equity for the month ended June 30, 20X1.

  VINCENT SUTTON, LANDSCAPE CONSULTANT
  Statement of Owners Equity
  Month Ended June 30, 20X1
  		0
  		$0

• Prepare a balance sheet for the month ended June 30, 20X1.

  VINCENT SUTTON, LANDSCAPE CONSULTANT
  Balance Sheet
  June 30, 20X1
  Assets		Liabilities
  		Owner's Equity
  Total Assets	$0	Total Liabilities and Owner's Equity	$0

• What is the change in owners equity for the month of June?

  Change in owner's equity