Reference no: EM132626479

Question - On June 1, Cindy Godfrey started Divine Designs Co., a company that provides craft opportunities, by investing $12,000 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.

Cash $10,150 Service Revenue $6,500

Accounts Receivable 2,800 Advertising Expense 500

Supplies 2,000 Rent Expense 1,600

Equipment 10,000 Gasoline Expense 200

Notes Payable 9,000 Utilities Expense 150

Accounts Payable 1,200

Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.

Required -

a. Make income statement and owner's equity statement for the month of June and a balance sheet at June 30, 2020.

b. Make income statement and owner's equity statement for June assuming the following data are not included above: (1) $900 of services were performed and billed but not collected at June 30, and (2) $150 of gasoline expense was incurred but not paid.