Income statement and balance sheet transactions; prepare the income statement and balance sheet (Learning Objectives 5 & 6) 25–30 min.

Jill Schultz started an interior design company called Interiors by Jill, Inc., on June 1, 2014. The following amounts summarize the financial position of her business on June 14, 2014, after the first two weeks of operations:

During the remainder of June, the following events occurred:

a. Schultz received $10,000 as a gift and used it to buy common stock in the business.

b. Paid off the beginning balance of Accounts Payable.

c. Performed services for a client and received cash of $2,500.

d. Collected cash from a customer on account, $2,130.

e. Purchased supplies on account, $850.

f. Consulted on the interior design of a major office building and billed the client for services performed, $6,200.
g. Sold an additional $7,000 of common stock in the business.
h. Incurred and paid salaries of $4,600.
i. Sold supplies at cost to another interior designer for $250 cash.
j. Paid dividends of $1,500 to Schultz.
Requirements 1. Enter the remaining transactions for the month of June into the expanded accounting equation, calculating new balances after each transaction.
2. Prepare the income statement of Interiors by Jill, Inc., for the month ended June 30, 2014.
3. Prepare the statement of retained earnings of Interiors by Jill, Inc., for the month ended June 30, 2014.
4. Prepare the balance sheet of Interiors by Jill, Inc., at June 30, 2014.AppendixLO1

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Assets Liabilities + Stockholders' Equity Common Stock Retained Earnings Accounts Common Service Salaries = Payable + Stock + Revenue $3,100 + $30,000 + $9,170 Expense - Dividends $4,460 0 Cash Accounts +Receivable Supplies + Equipment = $1,680 + $4,130 + 0 + $32,000