The following amounts summarize the financial position of Blythe Spirit Consulting, Inc. on May 31, 2014: During

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The following amounts summarize the financial position of Blythe Spirit Consulting, Inc. on May 31, 2014:

The following amounts summarize the financial position of Blythe Spirit

During June 2014, the business completed these transactions:
a. Received cash of $5,000, and issued common shares.
b. Performed services for a client, and received cash of $7,600.
c. Paid $4,000 on accounts payable.
d. Purchased supplies on account, $1,500.
e. Collected cash from a customer on account, $1,000.
f. Consulted on the design of a business report, and billed the client for services rendered, $2,500.
g. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $300.
h. Declared and paid a cash dividend of $2,000.
Requirements
1. Analyze the effects of the preceding transactions on the accounting equation of Blythe Spirit Consulting, Inc. Adapt the format of Exhibit 2-1 , Panel B.
2. Prepare the income statement of Blythe Spirit Consulting, Inc. for the month ended June 30, 2014. List expenses in decreasing order by amount.
3. Prepare the entity's statement of retained earnings for the month ended June 30, 2014.
4. Prepare the balance sheet of Blythe Spirit Consulting, Inc. at June 30, 2014.

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...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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