On June 1, Michelle Sasse started Divine Creations Co., a company that provides craft opportunities, by investing $15,200 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 |
$13,750 |
Notes Payable |
$9,000 |
|
Accounts Receivable |
3,000 |
Accounts Payable |
1,200 |
|
Service Revenue |
7,000 |
Supplies Expense |
1,600 |
|
Craft Supplies |
2,000 |
Gas and Oil Expense |
200 |
|
Advertising Expense |
400 |
Utilities Expense |
150 |
|
Equipment |
10,000 |
Michelle 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, 2010.
(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 gas and oil expense was incurred but not paid.