On June 1, Cindy Godfrey started Divine Designs, a company that provides craft opportunities, by investing $12,000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.

Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.

Instructions
a. Prepare an income statement and owner’s equity statement for the month of June and a statement of financial position at June 30, 2020.
b. Prepare an income statement and owner’s equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.

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Service Revenue Advertising Expense Rent Expense Cash $6,500 $10,150 2,800 Accounts Receivable 500 Supplies Equipment Notes Payable Accounts Payable 1,600 2,000 Gasoline Expense Utilities Expense 10,000 200 9,000 150 1,200