On May 31, 2012, Deanas Services Company had account balances as follows: Accounts payable Accounts receivable Cash Fees earned Insurance expense Building Accumulated depreciation Land Miscellaneous expense Prepaid insurance Short-term mortgage payable Long-term mortgage payable Rent expense Salary expense Dividends Supplies Supplies expense Utilities expense Capital stock Retained earnings (beginning balance on May 1, 2012) $ 9,900 26,950 11,390 70,800 1,475 225,000 75,000 174,400 1,510 2,000 20,000 230,000 8,000 35,300 15,100 950 825 3,800 81,000 20,000 Present, in good form, (a) an income statement for May, (b) a statement of stockholders equity as of May 31, and (c) a classified balance sheet as of May 31, showing current assets, fixed assets, current liabilities, long term liabilities, stockholders' equity. Income Statement For the Month Ended May 31, 2012 May 31,2012 2. Danielle Dog is the sole stockholder in Dog, the Beauty Hunter, Inc., a modeling agency. Below are transactions which occurred in the operation of the company during the month of June. Record each transaction on the worksheet that has been supplied for this purpose, including entries in the description column for any amounts entered into Retained Earnings. There is no need to total all of the columns. (20 points) o June 2 Purchased equipment at a cost of $12,000, making a cash down payment of $3,000 and obtaining a bank loan for the rest. o June 10 Performed services for a client on account, $10,000. June 20 Made a payment on account, $400 June 24 Received payment from a client on account for services previously provided, $5,000 June 27 Paid $1,200 to the bank. Of that amount, $1,000 was a repayment of the loan and $200 was interest. June 28 Paid salaries for June, $8,000 June 30 Paid a dividend, $5,000 O O O O O Date Cash Assets = Liabilities + Stockholders' Equity Alc Equipment Bank loan Capital Retained receivable payable Stock Earnings Description 6/2 6/10 .6/20 6/24 6/27 6/28 6/30 a) There are 2 reasons why certain assets depreciate. List those reasons here (1) (2) b) Dog's equipment has a useful life of 4 years. Calculate the depreciation for the month of June in the space below, showing all work. c) Dog's supplies on hand at the end of June amounted to $300. It started the month (June 1) with $800 of supplies. Make the adjustment for supplies expense for the month of June. (see the format in C above)