P1-3A On June 1, Cindy Godfrey started Divine Designs Co., a company that provid
ID: 2610536 • Letter: P
Question
P1-3A On June 1, Cindy Godfrey started Divine Designs Co., a company that provides craft opportunities, by investing $12,000 cash in the business. Following are the assets and liabilities of the company at J une 30 and the revenues and expenses for the month of Accounts Receivable Supplies Equipment Notes Pavable Accounts Payable 2,800 2,000 10,000 9,000 1,200 Service Revenue Advertising Expense Rent Expense Gasoline Expense Utilities Expense $6,500 500 1,600 200 150 Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month. Ins tructions (a) Prepare an income statement and owner's equity statement for the month of June and a balance sheet at June 30, 2017 (b) Prepare an income statement and owner's equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paidExplanation / Answer
a)
INCOME STATEMENT
FOR THE MONTH ENDED JUNE30,2017
BALANCE SHEET
AS ON 30 JUNE 2017
b)
350
INCOME STATEMENT
FOR THE MONTH ENDED JUNE30,2017
Service revenue 6500 less:Expenses Advertising expense 500 Rent expense 1600 Gasoline expense 200 Utilities expense 150 Total expense (2450) Net Income 4050Related Questions
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