Divine Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $26,200 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.
|
Cash |
$11,000 |
Notes Payable |
$13,000 |
|
Accounts Receivable |
4,000 |
Accounts Payable |
1,200 |
|
Service Revenue |
6,000 |
Supplies Expense |
1,600 |
|
Cosmetic Supplies |
2,000 |
Gas and Oil Expense |
800 |
|
Advertising Expense |
500 |
Utilities Expense |
300 |
|
Equipment |
25,000 |
Stockholders made no additional investments in June. The company paid a cash dividend of $1,200 during the month.
Instructions
(a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2011.
(b) Prepare an income statement and a retained earnings statement for June assuming the following data are not included above: (1) $800 of revenue was earned and billed but not collected at June 30, and (2) $100 of gas and oil expense was incurred but not paid.