On June 1, Alexia Rios started Crazy Creations 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

Notes Payable

$9,000

Accounts Receivable

3,000

Accounts Payable

1,200

Service Revenue

6,700

Supplies Expense

1,600

Supplies

2,000

Gasoline Expense

200

Advertising Expense

500

Utilities Expense

150

Equipment

10,000

Alexia 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 balance sheet at June 30, 2012.

(b) Prepare an income statement and owner’s equity statement for June assuming the following data are not included above: (1) $900 of revenue was earned and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.