Help please!!! GiGi statrted the business with $25,000 on July 1, 2006. On Octob

Question

Help please!!!

GiGi statrted the business with $25,000 on July 1, 2006. On October 1, 2006, the company borrowed $ 10,000 from Local Bank at 12 percent. The loan was for one year. The company purchased $ 9,000 worth of apples for cash during the fiscal year and $1,000 left over on June 30, 2007. The company also purchased $ 1,000 worth of jars, lids, and labels for cash. None was left on June 30, 2007. The company paid $ 18,000 for rent on the shop for 18months, beginning July 1, 2006. the shop had a fully equipped kitchen electricity costwere included with the rent. Just apples sold $ 29,000 worth of apple souce for cash during the first fiscal year. Just Apples paid $ 1,000 in advertising fees Required From the given information, prepare the Income statement, statement of owner's equity, and balance sheet for the fiscal year ending June 30, 2007, then, prepare the closing entries

Explanation / Answer

Income statment:

Interest $1,200

Net income $5,800

2.

Owners equity

capital $25,000

add:net income $5,800

$30,800

particulars    amount in $ sales 29,000 Less:cost of goods sold (9,000-1,000+1,000) 9,000 gross profit 20,000 Less;advertsement fees 1,000 rent 12,000

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