Dennis Luljak started his own delivery service, Luljak Deliveries, on June 1, 2014.
The following transactions occurred during the month of June.
June 1 Dennis invested $10,000 cash in the business.
2
Purchased a used van for deliveries for $12,000. Dennis 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 Withdrew $200 cash for personal use.
12 Purchased supplies for $150 on account.
15 Received a cash payment of $1,250 for services performed on June 5.
17 Purchased gasoline for $200 on account.
20 Received a cash payment of $1,300 for services performed.
23 Made cash payment of $600 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.
Instructions:
a. Show the effect of the previous transactions on the accounting equation.
b. Prepare income statement and owner’s equity statement for the month of June and a balance sheet 30 june