Patrick Coleman started his own delivery service, At Your Service Inc., on June 1, 2007. The following transactions occurred during the month of June.

June 1 Stockholders invested $16,000 cash in the business in exchange for common stock.

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

3 Paid $500 for office rent for the month.

5 Performed $1,900 of services on account.

9 Paid $300 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 $200 on account.

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

23 Made a cash payment of $800 on the note payable.

26 Paid $250 for utilities.

29 Paid for the supplies purchased on account on June 12.

30 Paid $750 for employee salaries.

Instructions

(a) Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.

Stockholders’

Assets = Liabilities + Equity Accounts : Delivery Notes Accounts , Common , Retained Date Cash + : afr Ss = s Se Receivable SUPRe Van Payable Payable Stock Earnings

(b) Net income $1,700 Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet.

(SO 1)

Include margin explanations for any changes in Retained Earnings.

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

(c) Prepare a classified balance sheet at June 30, 2007.