P1-4A Mark Miller started a delivery service, Miller Deliveries, on June 1,2008. The following transactions occurred during the month ofJune.

June 1 Stockholders invested $10,000 cash in the business.

2 Purchased a used van for deliveries for $12,000. Mark paid $2,000 cash and signed a note payable for the remaining balance.

3 Paid $500 for office rent for the month.

5 Performed $4,400 of services on account.

9 Paid $200 in cash dividends.

12 Purchased supplies for $150 on account.

15 Received a cash payment of $1,250 for services provided on June 5.

17 Purchased gasoline for $100 on account.

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

23 Made a cash payment of $500 on the note payable.

26 Paid $250 for utilities.

29 Paid for the gasoline purchased on account on June 17.

30 Paid $1,000 for employee salaries.

Analyze transactions and pre¬

pare financial statements.

(SO 6, 7, 8)

Instructions

(a) Show the effects of the previous transactions on the accounting equation using the following

(a) Retained earnings $3,850 format.

Stockholders’

Assets Liabilities Equity _ „ . Accounts _ .. Delivery Notes Accounts Common Retained Date Cash + Receivab|e + Suppl.es + Van = payab|e + payab,e + Stock + Eamings Include explanations for any changes in the Retained Earnings account in your analysis.

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

(c) Prepare a balance sheet at June 30,2008.