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The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month. Transactions: Sutton invested $159,000 in cash to
The accountant for the firm owned by Vincent Sutton prepares financial statements at the end of each month.
Transactions:
- Sutton invested $159,000 in cash to start the business.
- Paid $5,900 for the current months rent.
- Bought office furniture for $16,620 in cash.
- Performed services for $8,100 in cash.
- Paid $1,240 for the monthly telephone bill.
- Performed services for $13,900 on credit.
- Purchased a computer and copier for $37,800; paid $12,900 in cash immediately with the balance due in 30 days.
- Received $6,950 from credit clients.
- Paid $3,900 in cash for office cleaning services for the month.
- Purchased additional office chairs for $5,700; received credit terms of 30 days.
- Purchased office equipment for $39,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
- Issued a check for $9,300 to pay salaries.
- Performed services for $14,400 in cash.
- Performed services for $15,900 on credit.
- Collected $7,900 on accounts receivable from charge customers.
- Issued a check for $2,850 in partial payment of the amount owed for office chairs.
- Paid $690 to a duplicating company for photocopy work performed during the month.
- Paid $1,210 for the monthly electric bill.
- Sutton withdrew $8,900 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?
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