The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

Revenue$2,540Expenses:Rent Expense$500Advertising Expense$500Wages Expense$200$1,200Net Income$1,340

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

Owner's Equity at May 1$0plus: Investment2,000plus: Net Income1,340less: Withdrawals0Owner's Equity at May 31$3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

ASSETSLIABILITES AND OWNER'S EQUITYCurrent Assets:Current Liabilities:Cash$1,380Accounts Payable$300Accounts Receivable$1,500Advertising Payable$500Prepaid Rent$ 500Advances from Customers$200Prepaid Advertising$ 500Supplies$ 100$3,980Equipment$ 360Owner's Equity$3,340Total Assets$4,340Total Liabilities & OE$4,340

During June the following transactions occurred:

1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable).

2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $2000 in cash once finished.

3) Paid $500 for the rent of July.

4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.

5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600.

6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($2,000).

Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the questions.

At the end of the accounting period (June 30th, T account after AJE), what is the balance of Supplies?

$100

$50

$33

None of the others alternatives are correct

$0

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.

The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded:

SeptemberDescriptionAmount15Pays first 2 months of insurance$1,200

Dr. Prepaid Insurance 600 and Cr. Insurance Expense 600

Dr. Prepaid Insurance 1,200 and Cr. Cash 1,200

None of the others journal entries are correct, it is another journal entry

Dr. Insurance Expense 1,200 and Cr. Cash 1,200

The transaction does not need an AJE

The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

Revenue$2,540Expenses:Rent Expense$500Advertising Expense$500Wages Expense$200$1,200Net Income$1,340

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

Owner's Equity at May 1$0plus: Investment2,000plus: Net Income1,340less: Withdrawals0Owner's Equity at May 31$3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

ASSETSLIABILITES AND OWNER'S EQUITYCurrent Assets:Current Liabilities:Cash$1,380Accounts Payable$300Accounts Receivable$1,500Advertising Payable$500Prepaid Rent$ 500Advances from Customers$200Prepaid Advertising$ 500Supplies$ 100$3,980Equipment$ 360Owner's Equity$3,340Total Assets$4,340Total Liabilities & OE$4,340

During June the following transactions occurred:

1) Completed a job for which the customer paid $200 in June. The invoice is for $1000.

2) Hire a helper and paid $200 for works done.

3) Paid $500 for the rent of July.

4) Purchased supplies for $300. At the end of June notices that there are $200 of supplies left.

5) Orders new flyers for advertising. They will be ready in July but the printer asked to be paid in advance $100.

6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

Prepare "T" Accounts in CASH Basis for the period ended on June 30th and then answer the questions.

At the end of the accounting period (June 30th, T account after AJE), what is the total of Owners Equity?

Between $1,000 and $1,499

Less than $1,000

More than $3,000

Between $2,000 and $3,000

Between $1,500 and $1,999