Item9

0.15points

Item 9

The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

Revenue				$	2,540
Expenses:
Rent Expense	$	500
Advertising Expense	$	500
Wages Expense	$	200		$	1,200
Net Income				$	1,340

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

Owner's Equity at May 1	$	0
plus: Investment		2,000
plus: Net Income		1,340
less: Withdrawals		0
Owner's Equity at May 31	$	3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

ASSETS							LIABILITES AND OWNER'S EQUITY
Current Assets:							Current Liabilities:
Cash	$	1,380					Accounts Payable	$	300
Accounts Receivable	$	1,500					Advertising Payable	$	500
Prepaid Rent	$	500					Advances from Customers	$	200
Prepaid Advertising	$	500
Supplies	$	100		$	3,980
Equipment				$	360		Owner's Equity	$	3,340
Total Assets				$	4,340		Total Liabilities & OE	$	4,340

During June the following transactions occurred:

1) Completed a job for which the customer paid $500 in June. The invoice is for $1,000.

2) Hire a helper and paid $1,000 for works done.

3) Paid $500 for the rent of July.

4) Purchased supplies for $500. At the end of June notices that there are $500 of supplies left.

5) Orders new flyers for advertising. They will be ready in July but the printer asked to be paid in advance $100.

6) In June collected in cash $1,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) Received an advancement of $2,000 from a customer for a job to be done in August.

9) Asked for a 5 years loan in the local bank for $4,000 and got it in June 7^th.

10) With the money of the loan purchased equipment for $4,200 It is expected that the equipment will last 5 years.

Prepare "T" Accounts in CASH Basis for the period ended on June 30^th and then answer the questions.

At the end of the accounting period (June 30^th, T account after AJE), what is the total of Cash?

Multiple Choice

Between $1,500 and $1,999

Between $1,000 and $1,499

Between $2,000 and $3,000

More than $3,000

Less than $1,000