Mango Designs began selling its custom furniture on June 1, 2014. At the end of the month, the special journals showed the following results. Other information you will need is as follows:
€¢ Interest of $120 had accrued on the note payable as of June 30, 2014
€¢ $13,200 of the office supplies had been used by June 30, 2014
€¢ Depreciation on the store equipment was $550 for June

Required
Using the information provided, prepares a single-step income statement, statement of changes in equity, and classified balance sheet.
Analysis Component:
Does Mango Designs use a perpetual or periodic inventory system? Explain how you know.

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Sales journal Page 3 3 Cost of Goods Sold Dr. Invoice A/R DrMerchandse Number PR Sales. Cr. Inventory Cr. Date 2014 June 5 Leslie Haverly Account Debited 381 9,100 382 | 17,900 | 13,400 383 | 38,400 | 28,800 384 2,900 38522,700 17,025 2 6,800 6 Tomlinson Architects 13 Dentures Galore 14 Leslie Haverly 27 | Nelson Consulting 2,175 Cash Receipts journal Crei SaestheCost ge Cr. 3 Cost of Goods other AcctSaesCredit Sales Account Credited Cash Discount Rec Debit sAccs Merchandise Date 2014 ion PR Credit CreditSol June1 Tom Mandalay Owner Invmt. 30 75,000 251 50,000 75,000 50,000 10 Notes Payable L.T. loan 8,918 182 9,100 15 Leslie Haverly Sale of june S 20 Cash sales Cash sales 121,370 121,370 66,700 29 Tomlinson Sale of june 67,90017,900 Purchases journal Page 3 Other Accounts MerchandiseOffice Payable Inventory Supplies Acct Date of Date Account Credited Invoice Te PR Credit Debit June 2 Tenor Company Terms Debit Debit 2014 2 2/10, n/6072,000 72,000 7 Indago Manufactureue7 n/10 EOM18,000 17 Penray Suppliers 18 Ego/Store Equipment June 1 18,000 llune 17 | 1/10 EOM| 91,000| 91: 18 n/30165/32,000 32,000 Page 3 Accts Payable Debit Cash Disbursements Journal Merchandise Other Cash Inventory Accts Debit Ch. Date No. 2014 PRI Credit | Credit Payee Account Debited une3 100 The Daily Gazette Adertising Expense 655550 70,560 550 1,440 0 101 Tenor CompanyTenor Company 30 102 Payroll 72,000 Sales Salaries Expense 621 42,000 42,000