On June 1, Tamara Eder started Crazy Creations Co., a company that provides craft opportunities, by investing
Question:
On June 1, Tamara Eder started Crazy Creations Co., a company that provides craft opportunities, by investing $12,000 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 ...............$10,150
Accounts Receivable ........ 3,000
Supplies ............. 2,000
Equipment ............ 10,000
Notes Payable ............ 9,000
Accounts Payable ......... 1,200
Service Revenue ........... $6,700
Advertising Expense ........ 500
Rent Expense ........... 1,600
Gasoline Expense ........... 200
Utilities Expense .......... 150
Tamara 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, 2014.
(b) Prepare an income statement and owner’s equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso