Dori Cruz started an interior design company called Interiors by Design, Inc., on April 1, 2018. The following amounts summarize the financial position of her business on April 14, 2018, after the first two weeks of operations:

During the remainder of April, the following events occurred:

a. Cruz received $8,000 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 $3,500

d. Collected cash from a customer on account, $400

e. Purchased supplies on account, $1,300

f. Consulted on the interior design of a major office building and billed the client for services performed, $5,500

g. Sold an additional $10,000 of common stock in the business

h. Incurred and paid salaries of $2,500

i. Sold supplies at cost to another interior designer for $175 cash

j. Paid dividends of $800 to the stockholders of Interiors by Design, Inc.

Requirements

1. Enter the remaining transactions for the month of April into the expanded accounting equation, calculating new balances after each transaction.

2. Prepare the income statement of Interiors by Design, Inc., for the month ended April 30, 2018.

3. Prepare the statement of retained earnings of Interiors by Design, Inc., for the month ended April 30, 2018.

4. Prepare the balance sheet of Interiors by Design, Inc., at April 30, 2018.

Transcribed Image Text:

Stockholders' Equity Liabilities + Assets Common Stock Retained Earnings Service + Revenue Accounts + Equipment = Payable Salaries Accounts + Receivable + Supplies $1,380 + $3,820 + 0 + $28,000 Common Stock Cash Dividends Expense $2,000 - 0 + $4,500 + $24,000 + $6,700