Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following amounts summarize the financial position of Little Brown Dog Inc. on May 31, 2019: Liabilities Assets Computers Shareholders' Equit Accounts Note Salaries Interest
The following amounts summarize the financial position of Little Brown Dog Inc. on May 31, 2019: Liabilities Assets Computers Shareholders' Equit Accounts Note Salaries Interest able Retained Cash + Supplies + Land able are Balance 2600 1000 100 12000 4000 3700 During June 2019, the business completed these transactions June 1: Received cash of $7500 and issued common shares June 1 : Bought two computers for a total of $8000 by paying $1750 down and signing a note payable for the rest. Interest of 10% to be paid with the note payable on June 1, 2020. The computers are expected to last 5 years June 5: Performed services for a client and received cash of $5000 June 9: Paid $2000 on accounts payable June 13: Purchased supplies on account, $3000 June 20: Collected cash from a customer on account, $600 June 23: Consulted on the design of a business report, and billed the client for services rendered, $2500 June 28: Declared and paid a cash dividend of $1100 June 30: Recorded the following business expenses for the month: paid office rent, $400; paid advertising, $800 June 30: Accrued $2200 in employee salaries. Employees are paid on the first day of each month. June 30: A count revealed that $1000 worth of supplies are still on hand. Other Information: 1) In the past, Little Brown Dog Inc. has used the following accounts on their income statement: Revenue, Depreciation Expense, Supplies Expense, Interest Expense, Rent Expense, Salaries Expense, Advertising Expense, and Supplies Expense. They use the Dividends account to record dividends. Not all accounts have been used each period. Required 1) Create all necessary journal entries for the month of June 2018. Place your answer under "Requirement 1 in the "Answer tab. Note that the dates have been pre-populated. Ensure your journal entries match the appropriate date. Explanations are not required. 2) Analyze the effects of the above transactions on the accounting equation. Place your answer under "Requirement 2" in the "Answer" tab 3) Prepare the Income Statement for the month ended June 30, 2019. List expenses in decreasing order by amount. Place your answer under "Requirement 3* in the "Answer" tab. 4) Prepare the Statement of Retained Earnings for the month ended June 30, 2019. Place your answer under "Requirement 4" in the "Answer" tab." 5) Prepare the Balance Sheet at June 30, 2019. Place your answer under "Requirement 5* in the Answer* tab
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started