Question
The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May
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 | $ | 2,540 | ||||
Expenses: | ||||||
Rent Expense | $ | 500 | ||||
Advertising Expense | $ | 500 | ||||
Wages Expense | $ | 200 | $ | 1,200 | ||
Net Income | $ | 1,340 | ||||
TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY
Owner's Equity at May 1 | $ | 0 | |
plus: Investment | 2,000 | ||
plus: Net Income | 1,340 | ||
less: Withdrawals | 0 | ||
Owner's Equity at May 31 | $ | 3,340 | |
TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31
ASSETS | LIABILITES AND OWNER'S EQUITY | |||||||||
Current Assets: | Current Liabilities: | |||||||||
Cash | $ | 1,380 | Accounts Payable | $ | 300 | |||||
Accounts Receivable | $ | 1,500 | Advertising Payable | $ | 500 | |||||
Prepaid Rent | $ | 500 | Advances from Customers | $ | 200 | |||||
Prepaid Advertising | $ | 500 | ||||||||
Supplies | $ | 100 | $ | 3,980 | ||||||
Equipment | $ | 360 | Owner's Equity | $ | 3,340 | |||||
Total Assets | $ | 4,340 | Total Liabilities & OE | $ | 4,340 | |||||
During June the following transactions occurred:
1) Completed a job for which the customer paid $500 in June. The invoice is for $1,000.
2) Hire a helper and paid $1,000 for works done.
3) Paid $500 for the rent of July.
4) Purchased supplies for $500. At the end of June notices that there are $500 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 $1,000 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) Received an advancement of $2,000 from a customer for a job to be done in August.
9) Asked for a 5 years loan in the local bank for $4,000 and got it in June 7th.
10) With the money of the loan purchased equipment for $4,200 It is expected that the equipment will last 5 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 Revenues?
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