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 1600 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. 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.
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
1600
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.
Transcribed Image Text: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 1600 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.
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