Reference no: EM132865925

Question - The following amounts summarize the financial position of Blythe Spirit Consulting, Inc. on May 31, 2020:

Cash 1300

Accounts Receivable 1000

Land 12000

Accounts Payable 8000

Common Shares 4000

Retained earnings 2300

During June 2020, the business completed these transactions:

a. Received cash of $5,000, and issued common shares.

b. Performed services for a client, and received cash of $7,600.

c. Paid $4,000 on accounts payable.

d. Purchased supplies on account, $1,500.

e. Collected cash from a customer on account, $1,000.

f. Consulted on the design of a business report, and billed the client for services rendered, $2,500.

g. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $300.

h. Declared and paid a cash dividend of $2,000.

Requirements -

1. Prepare the income statement of Blythe Spirit Consulting, Inc. for the month ended June 30, 2020. List expenses in decreasing order by amount.

2. Prepare the entity's statement of retained earnings for the month ended June 30, 2020.

3. Prepare the balance sheet of Blythe Spirit Consulting, Inc. at June 30, 2020.

4. Journalize and post transactions.