On June 1, 1999, Green Hills Riding Stable, Incorporated, was organized. The following transactions occurred during June:

Required 

a. Prepare a summary of the preceding transactions. Use columns headed Cash. Accounts Receivable, Land, Accounts Payable, Notes Payable, Capital Stock, and Retained Earnings. Determine balances after each transaction to show that the basic equation is in balance.

b. Prepare an income statement for June 1999.

c. Prepare a statement of retained earnings for June 1999.

d. Prepare a balance sheet as of June 30, 1999. TRUE-FALSE

Transcribed Image Text:

June 1 Shares of capital stock were issued for $10,000 cash. 4 A horse stable and riding equipment were rented (and paid for) for the month at a cost of $1,200. 8 Horse feed for the month was purchased on credit, $800. 15 Boarding fees of $3,000 for June were charged to those owning horses boarded at the stable. (This amount is due on July 10.) 20 Miscellaneous expenses of $600 were paid. 29 Land was purchased from a savings and loan association by borrowing $40,000 on a note from that association. The loan is due to be repaid in five years. Interest payments are due at the end of each month beginning July 31. 30 Salaries of $700 for the month were paid. 30 Riding and lesson fees were billed to customers in the amount of $2,800. (They are due on July 10.)