Breanna Baxter started an interior design company called Interiors on Demand, Inc., on June 1, 2018. The following amounts summarize the financial position of her business on June 14, 2018, after the first two weeks of operations:

During the remainder of June, the following events occurred:

a. Baxter received $16,000 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 $5,000

d. Collected cash from a customer on account, $1,150

e. Purchased supplies on account, $800

f. Consulted on the interior design of a major office building and billed the client for services performed, $4,500

g. Sold an additional $9,000 of common stock in the business

h. Incurred and paid salaries of $2,200

i. Sold supplies at cost to another interior designer for $250 cash

j. Paid dividends of $1,000 to the stockholders of Interiors on Demand, Inc.

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 on Demand, Inc., for the month ended June 30, 2018.

3. Prepare the statement of retained earnings of Interiors on Demand, Inc., for the month ended June 30, 2018.

4. Prepare the balance sheet of Interiors on Demand, Inc., at June 30, 2018.

Transcribed Image Text:

Stockholders' Equity Assets Liabilities + Retained Common Stock Earnings Service + Revenue Accounts + Receivable + Supplies + Equipment = Payable + Common Salaries Accounts Dividends Cash Stock Expense $1,520 $1,610 + $3,070 + 0 + $25,000 $4,500 + $20,000 + $6,700