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Jun. 1 Anita Strods, the owner, invested $156,000 cash, office equipment with a value of $19,000, and $88,000 of drafting equipment to launch the company
Jun. 1 Anita Strods, the owner, invested $156,000 cash, office equipment with a value of $19,000, and $88,000 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $63,000 for an office by paying $25,900 cash and signing a long-term note payable for $37,100. Jun. 3 The company purchased a portable building with $41,000 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $11,400 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $17,400 cash. Jun. 6 The company purchased $36,800 of additional drafting equipment by paying $23,500 cash and signing a long-term note payable for $13,300. Jun. 7 The company completed $36, 400 of engineering services for a client. This amount is to be received in 30 days. Jun. 8 The company purchased $2,550 of additional office equipment on credit. Jun. 9 The company completed engineering services for $27,600 on credit. Jun. 10 The company received a bill for rent of equipment that was used on a recently completed job. The $2,700 rent cost must be paid within 30 days. Jun. 12 The company collected $18,200 cash in partial payment from the client billed on June 9. Jun. 14 The company paid $2,000 cash for wages to a drafting assistant. Jun. 17 The company paid $2,550 cash to settle the account payable created in on June 8. Jun. 20 The company paid $1,625 cash for minor maintenance of its drafting equipment. Jun. 23 The company paid $10,040 cash in dividends. Jun. 28 The company paid $2,000 cash for wages to a drafting assistant. Jun. 29 The company paid $3,620 cash for advertisements on the web during June. STRODS ENGINEERING Income Statement For Month Ended June 30, 2018 Revenues: Engineering fees earned $ 64,000 STRODS ENGINEERING Statement of Retained Earnings For Month Ended June 30, 2018 Retained earnings, June 1, 2018 Add: $ 0 Net income 52,055 52,055 $ 64,000 52,055 Total revenues Expenses: Equipment rental expense Repairs expense Advertising expense Wages expense Less: Dividends 10,040 2,700 1,625 3,620 DO 10,040 42,015 Retained earnings, June 30, 2018 $ 4,000 Total expenses Net income 11,945 52,055 $ STRODS ENGINEERING Balance Sheet June 30, 2018 Assets: Cash $ 67,965 45,800 11,400 21,550 Accounts receivable Prepaid insurance Office equipment Building Land Drafting equipment 41,000 63,000 124,800 Total assets $ 375,515 Liabilities: Accounts payable Notes payable 2,700 50,400 Total liabilities $ 53,100 Equity: Common stock Retained earnings Total equity Total liabilities and equity 263,000 42,015 305,015 358,115 $
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