The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month.

Transactions:

a. Sutton invested $160,000 in cash to start the business.

b. Paid $6,000 for the current months rent.

c. Bought office furniture for $16,720 in cash.

d. Performed services for $8,200 in cash.

e. Paid $1,250 for the monthly telephone bill.

f. Performed services for $14,000 on credit.

g. Purchased a computer and copier for $38,000; paid $13,000 in cash immediately with the balance due in 30 days.

h. Received $7,000 from credit clients.

i. Paid $4,000 in cash for office cleaning services for the month.

j. Purchased additional office chairs for $5,800; received credit terms of 30 days.

k. Purchased office equipment for $40,000 and paid half of this amount in cash immediately; the balance is due in 30 days.

l. Issued a check for $9,400 to pay salaries.

m. Performed services for $14,500 in cash.

n. Performed services for $16,000 on credit.

o. Collected $8,000 on accounts receivable from charge customers.

p. Issued a check for $2,900 in partial payment of the amount owed for office chairs.

q. Paid $700 to a duplicating company for photocopy work performed during the month.

r. Paid $1,220 for the monthly electric bill.

s. Sutton withdrew $9,000 in cash for personal expenses.

Required: Prepare a trial balance, an income statement, a statement of owners equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 20X1. Determine the account balances before you start work on the financial statements. Analyze: What is the change in owners equity for the month of June?