P13A On June 1 Cindy Godfrey started Divine Designs Co a com

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 paid

Solution

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		4050