Question
PLEASE EXPLAIN THE SOLUTION The following amounts summarize the financial position of Blythe Spirit Consulting, Inc. on May 31, 2020: Cash 1300 Accounts Receivable 1000
PLEASE EXPLAIN THE SOLUTION
The following amounts summarize the financial position of Blythe Spirit Consulting, Inc. on May 31, 2020:
Cash 1300
Accounts Receivable 1000
Land 12000
Accounts Payable 8000
Common Shares 4000
Retained earnings 2300
During June 2020, the business completed these transactions:
a. Received cash of $5,000, and issued common shares.
b. Performed services for a client, and received cash of $7,600.
c. Paid $4,000 on accounts payable.
d. Purchased supplies on account, $1,500.
e. Collected cash from a customer on account, $1,000.
f. Consulted on the design of a business report, and billed the client for services rendered, $2,500.
g. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $300.
h. Declared and paid a cash dividend of $2,000.
Journalize and post transactions Requirements
1. Prepare the income statement of Blythe Spirit Consulting, Inc. for the month ended June 30, 2020. List expenses in decreasing order by amount.
2. Prepare the entity's statement of retained earnings for the month ended June 30, 2020.
3. Prepare the balance sheet of Blythe Spirit Consulting, Inc. at June 30, 2020.
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