Financial Position Transactions Required 1. Prepare the Income Statement of Bayville Consulting, Inc. for the month ended June 30, 20XX. List expenses in decreasing order by amount. 2. Prepare the entity's Statement of Retained Earnings for the month ended June 30, 20XX. 3. Prepare the Balance Sheet of Bayville Consulting, Inc. as of June 30 , 20X 4. Journalize the transactions of Bayville Consulting, Inc. Explanations are not required. 5. Post the transactions to the T-accounts. Insert in each account its balance as given (example: Cash $1,270 ). Compute the balance in each account. For each asset account, each liability account, and for Common Shares, compare its balance to the ending balance you obtained in Requirement 3 . Are the amounts the same or different? During June 20XX, the business completed these transactions: a. Received cash of $5,150 and issued common shares. b. Performed services for a client and received cash of $7,400. c. Paid $4,020 on accounts payable. d. Purchased supplies on account, $1,580. e. Collected cash from a customer on account, $1,090. f. Consulted on the design of a business report, and billed the client for services rendered, $2,520. g. Recorded the following business expenses for the month: paid office rent, $750; paid advertising, $340. h. Declared and paid a cash dividend of $2,060. In this step, prepare the journal entry for transaction (d). Purchased supplies on account, $1,580. (Record debits first, then credits. Exclude explanations from journal entries.) \begin{tabular}{l|l|l|l|} \hline & Account Titles & Debit & Credit \\ \hline (d) & & & \\ & & & \\ & & & \\ & & & \\ \cline { 2 - 4 } & & & \\ & & & \\ & & & \\ \end{tabular} Now, prepare the journal entry for transaction (e). Collected cash from a customer on account, $1,090. (Record debits first, then credits. Exclude explanations from journal entries.) \begin{tabular}{l|l|l|l|} \hline & Account Titles & Debit & Credit \\ \hline (f) & & & \\ \cline { 2 - 4 } & & & \\ & & & \\ & & & \\ & & & \\ & & & \\ & & & \\ & & & \\ \end{tabular} Requirement 4. Journalize the transactions of Bayville Consulting, Inc. Explanations are not required. Next, prepare the journal entry for transaction (c). Paid $4,020 on accounts payable. (Record debits first, then credits. Exclude explanations from journal entries.) \begin{tabular}{c|c|c|c} \hline & Account Titles & Debit & Credit \\ \hline \end{tabular} For each asset account, each liability account, and for Common Shares, compare its balance to the ending balance you obtained in requirement 3 . Are the amounts the same or different? A. The amount in the T-account for Accounts Receivable is different than the ending balance in requirement 3 . B. All of the amounts in the T-accounts are the same as the ending balance in requirement 3 . C. The amount in the T-account for Service Revenue is different than the ending balance in requirement 3 . D. The amount in the T-account for Cash is different than the ending balance in requirement 3
