On June 1, Michelle Bullock started Divine Cosmetics Co., a company that provides individual skin care treatment, by investing \($26,200\) 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.

Michelle made no additional investment in June, but withdrew \($1,200\) 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, 2008.

(b) Prepare an income statement and owner’s equity 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 not paid.

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