Nancy Tercek started a delivery service, Tercek Deliveries, on June 1, 2015. The following transactions occurred during the month of June.

Show the effects of the previous transactions on the accounting equation using the following format.

a. Include margin explanations for any changes in the Retained Earnings account in your analysis. (Check Figure: Total assets $25,800)

b. Prepare an income statement for the month of June. (Check Figure: Net income $4,450)

c. Prepare a balance sheet at June 30, 2015. (Check Figure: Cash $8,100)

Nancy Tercek started a delivery service, Tercek Deliveries, on June 1, 2015. The following transactions occurred during the month of June.

June 1

Stockholders invested $10,000 cash in the business in exchange for common stock.

2

Purchased a used van for deliveries for $14,000. Nancy paid $2,000 cash and signed a note payable for the remaining balance.

3

Paid $500 for office rent for the month.

5

Performed $4,800 of services on account.

June 9

Declared and paid $300 in cash dividends.

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 $100 on account.

20

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

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.

Tercek Deliveries

Assets

=

Liabilities

+

Stockholders' Equity

Accounts

Notes

Accounts

Common

Retained Earnings

Date

Cash

+

Receivable

+

Supplies

+

Equipment

=

Payable

+

Payable

+

Stock

+

Revenues

-

Expenses

-

Dividends

June 1

$10,000

$1,000

2

14000

12000

2000

3

5

9

12

15

17

20

23

26

29

30

Totals

	Tercek Deliveries
	Income Statement
	For the Month Ended June 30, 2015
1	Revenues							1
2								2
3								3
4	Expenses							4
5								5
6								6
7								7
8								8
9								9
10								10
11								11
12	Net income							12
13								13
14								14
	(c)
	Tercek Deliveries
	Balance Sheet
	June 30, 2015
1	Assets							1
2								2
3								3
4								4
5								5
6								6
7								7
8	Liabilities and Stockholders' Equity							8
9								9
10								10
11								11
12								12
13								13
14								14
15								15
16								16
17								17
18								18