P2-61A. (Learning Objective 1: Analyzing transactions with the accounting equation;

preparing the financial statements) The following amounts summarize the financial position of Mason Resources, Inc., on May 31, 20X6:

During June 20X6, Mason Resources completed these transactions:

a. The business received cash of $8,100 and issued ordinary shares.

b. Performed services for a customer and received cash of $7,200.

c. Paid $5,100 on accounts payable.

d. Purchased supplies on account, $700.

e. Collected cash from a customer on account, $1,000.

f. Consulted on the design of a computer system and billed the customer for services rendered, $2,400.
g. Recorded the following business expenses for the month: (1) paid office rent—$1,200;
(2) paid advertising—$900.
h. Declared and paid a cash dividend of $1,400.
Requirements 1. Analyze the effects of the preceding transactions on the accounting equation of Mason Resources, Inc.
2. Prepare the Income Statement of Mason Resources, Inc., for the month ended June 30, 20X6. List expenses in decreasing order by amount.
3. Prepare the entity’s statement of changes in equity for the month ended June 30, 20X6.
4. Prepare the Balance Sheet of Mason Resources, Inc., at June 30, 20X6.

Transcribed Image Text:

Assets Liabilities + Shareholders' Equity Accounts Cash + Receivable Accounts Share Retained + Supplies + Land Payable + Capital + Earnings Bal. 1,350 1,250 11,500 7,200 4,500 2,400