prepare an income statement that reports the firm rsquo s profit during june 578053

Recording Transactions Davidson Enterprises had the following transactions during its first month of business, June 2004. June 1 Lynne Davidson set up a bank account in the business name and deposited $8,000 of her personal funds to it.

2 June’s rent of $525 per month for a store front location was paid in cash.

7 Goods for resale costing $3,600 were purchased using cash.

12 Paid advertising costs of $1,000 for the firm’s Gala Grand Opening.

26 Goods costing $3,000 were sold during June for $7,200 in cash.

30 Workers were paid $850 and the utility company was paid $228 for June services.

Required

A. Use the format illustrated below to show how these transactions would be recorded.

B. Prepare an income statement that reports the firm’s profit during June.

C. Prepare a balance sheet that reports the firm’s assets, liabilities, and equity at June 30.