1 Stockholders invested $21,218 cash in the business in exchange for common stoc

Question

1 Stockholders invested $21,218 cash in the business in exchange for common stock 2 Purchased a used van for deliveries for $14,445. Nancy paid $3,836 cash and signed a note payable for the remaining balance 3 Paid $439 for office rent for the month 5 Performed $5,100 of services on account. 9 Declared and paid $374 in cash dividends. 12 Purchased supplies for $202 on account. 15 Received a cash payment of $1,332 for services provided on June S. 17 Purchased gasoline for $295 on account. 20 Received a cash payment of $1,523 for services provided 23 Made a cash payment of $412 on the note payable. 26 Paid $344 for utilities. 29 Paid for the gasoline purchased on account on June 17 30 Paid $1,462 for employee salaries.

Explanation / Answer

Solution:

Tercek Deliveries Income Statement              For the month ended June 30,2015 Revenues Service Revenue 6623 Expenses Rent 439 Supplies 202 Travelling/Conveyance 295 utilities 344 Employee Salaries 1462 2742 Net Income /Loss 3881 Tercek Deliveries Balance Sheet June 30,2015 Assets Delivery Van 14,445 Debtors 3768 Cash 16911 Total Assets 35,124 Common Stock Capital 21218 Reserves Net income 3881 Less : Dividends 374 3507 Note Payable 10,197 Creditors 202 Total Liabilites and Share holder's Equity 35124 Journal Entries Dr Cr Dr Cr 1-Jun Cash 21218 Equity 21218 2-Jun Delivery van 14,445 Cash 3836 Note payable 10,609 3-Jun Rent 439 Cash 439 5-Jun Debtors 5100 Service Revenue 5100 9-Jun P& L 374 Cash 374 12-Jun Supplies 202 Creditors 202 15-Jun Cash 1332 Debtors 1332 17-Jun Travelling 295 Creditors 295 20-Jun Cash 1523 Service Revenue 1523 23-Jun Notes Payable 412 Cash 412 26-Jun utilities 344 Cash 344 29-Jun Creditors 295 Cash 295 30-Jun Employee Salary 1462 Cash 1462

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