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.

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 notpaid.

Transcribed Image Text:

$13,000 1,200 1,600 800 300 $11,000 Notes Payable Cash Accounts Receivable Service Revenue Cosmetic Supplies Advertising Expense Equipment 4,000Accounts Payable 6,000 Supplies Expense 2,000 Gas and Oil Expense 500 25,000 Utilities Expense