MESSAGE MY INSTRUCTO ILL SCRnN PRINTER VERSION BACK NEXT Pro

MESSAGE MY INSTRUCTO ILL SCRnN PRINTER VERSION ·BACK NEXT Problem 1-3A On June 1, Ondy Godfrey started Divine Designs Co a company that prevides craft opportunities, by investing $12,170 cash in the business. Following are the asets and lisbilities f the company at une 30 and the revenues and expenses for the month of June ont opportunities, by investing $12,170 cash in the business. Folowing ar thn assets and lablites of the company at $7,500 500 1,400 210 160 10,000 Service Revenue Cash Accounts Receivable Supplies Equipment 3,400 Advertising Expense 2,500 Rent Expense 0,000 Gasoline Expense 8,600 Utilities Expense 1,200 Accounts Payable Ondy made no additional investment in June but withdrew $1,300 in cash for personal use during the month

Solution

Solution :- Income statement

Revenue :-

Service Revenue (A)

7500

Expenses :-

Advertising expense 500

Rent expense 1400

Gasoline expense 210

Utility expense 160

Total expenses (B) 2270

2270

Conclusion :- Net income = $ 5230.

Owner\'s equity statement

Owner\'s capital on June 1 (Beginning capital balance)

Add :- Investment

Add :- Net income

Less :- Drawings

0

12170

5230

1300

Conclusion :- Owner\'s capital on June 30 (Ending capital balance) = $ 16100.

Balance sheet

Cash

Accounts receivable

Supplies

Equipment

10000

3400

2500

10000

Liabilities

Accounts payable

Notes payable

1200

8600

Particulars	Amount ($)
Revenue :- Service Revenue (A)	7500
Expenses :- Advertising expense 500 Rent expense 1400 Gasoline expense 210 Utility expense 160 Total expenses (B) 2270	2270
Net income = (A) - (B)	5230