Reference no: EM131802605
Question - Mike Bean opens a garden supply shop. During September, the first month of operation, he experienced the following events:
09/01 Owner contributes $7,500 in cash to capitalize the business
09/08 Purchased $2,500 in garden equipment/supplies on account, payable in 30 days.
09/15 Paid first month's shop rent of $1,000.
09/17 Sold garden equipment that cost $800 for $1,100; collected $400 cash; billed customers for the balance.
09/25 Collected $425 from customers on accounts.
09/28 Paid $500 to suppliers for parts purchased earlier this month
Requirements:
1. Prepare journal entries for the preceding transactions.
2. Prepare income statement for the month ended 09/30/XX.
3. Prepare the balance sheet for 09/30/XX.
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