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 June 30 and the revenues and expenses for the month of June. Cash $10,150 Service Revenue $6,500 Accounts Receivable 2,800 Advertising Expense 500 Supplies 2,000 Rent Expense 1,600 Equipment 10,000 Gasoline Expense 200 Notes Payable 9,000 Utilities Expense 150 Accounts Payable 1,200 Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month. Instructions (a) Prepare an income statement and owner’
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 June 30 and the revenues and expenses for the month of
June.
Cash $10,150 Service Revenue $6,500
Accounts Receivable 2,800 Advertising Expense 500
Supplies 2,000 Rent Expense 1,600
Equipment 10,000 Gasoline Expense 200
Notes Payable 9,000 Utilities Expense 150
Accounts Payable 1,200
Cindy made no additional investment in June but withdrew $1,300 in cash for personal
use during the month.
Instructions
(a) Prepare an income statement and owner’s equity statement for the month of June and
a
(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
paid.
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