Interpreting Information Reported on Financial Statements The two most recent monthly balance sheets of Strauss Instrument Company are shown below. Also shown is the most recent monthly income statement.
|
Balance Sheet |
31 May |
30 Jun |
31 May |
30 Jun |
|
|
Assets: |
Liabilities and Owners’ Equity: |
||||
|
Cash |
$3,200 |
$1,375 |
Accounts payable |
$2,300 |
$2,300 |
|
Accounts receivable |
5,700 |
5,900 |
Wages payable |
1,900 |
1,400 |
|
Equipment |
26,300 |
26,300 |
Notes payable |
48,600 |
40,100 |
|
Building115,000 |
115,000 |
115,000 |
Owners’ investment |
43,000 |
47,000 |
|
Accumulated depreciation |
28,000 |
28,500 |
Retained earnings |
26,400 |
29,275 |
|
Total |
$122,200 |
$120,075 |
$122,200 |
$120,075 |
|
Income Statement for June |
|
|
Service revenues |
$7,300 |
|
Rent expense |
1,300 |
|
Wages expense |
1,900 |
|
Supplies expense |
400 |
|
Depreciation expense |
500 |
|
Interest expense |
325 |
|
Net income |
$2,875 |
Required From the financial statements presented, identify and record the transactions that occurred during June. Use the spreadsheet format shown on the next page to record the transactions. One transaction is shown as an example.
|
ASSETS |
= |
LIABILITIES |
+ |
OWNERS’ EQUITY |
|||
|
Accounts |
Cash |
Other |
Contributed |
Retained |
|||
|
Beginning Amounts |
3,200 |
+119,000 |
= |
52,800 |
+ |
43,000 |
26,400 |
|
Cash |
+7,100 |
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|
Accounts Receivable |
+200 |
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|
Service Revenues |
+7,300 |