On June 1, Jennifer Garner started Divine Cosmetics Co, a company that provides individual skin care treatment, by investing RM 26,200 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

RM 10,000

Notes payable

RM 13,000

Account receivable

4,000

Account payable

1,200

Service revenue

5,500

Supplies expense

1,600

Cosmetics supplies

2,000

Gas and oil expense

800

Advertising expense

500

Utilities expense

300

Equipment

25,000

Jennifer made no additional investment in June, but withdrew RM 1,700 in cash for personal use during the month.

Instructions

Prepare an income statement and a balance sheet at June 30, 2007.