Peter Alex started his own delivery service, Alex Deliveries Inc., on June 1, 2001.

prepare financial statements. | The following transactions occurred during the month of June:

(SO 1) June 1 Stockholders invested $15,000 cash in the business.

2 Purchased a used van for deliveries for $10,000. Alex paid $2,000 cash and signed a note payable for the remaining balance.

3 Paid $500 for office rent for the month.

5 Performed $1,000 of services on account.

9 Paid $200 in cash dividends.

12 Purchased supplies for $150 on account.

15 Received a cash payment of $750 for services provided on June 5.

17 Purchased gasoline for $100 on account.

20 Received a cash payment of $1,500 for services provided.

23 Made a cash payment of $500 on the note payable.

26 Paid $250 for utilities.

29 Paid for the gasoline purchased on account on June 17.

30 Paid $500 for employee salaries.

Instructions

(a) Show the effects of the previous transactions on the accounting equation using the following format:

Include margin explanations for any changes in Retained Earnings.

(b) Prepare an income statement for the month of June.

(c) Prepare a balance sheet at June 30, 2001.

Transcribed Image Text:

Accounts Assets Date Cash + Receivable + Supplies + Delivery Van Liabilities Stockholders' Equity Notes Accounts Common Retained Payable + Payable + Stock + Earnings