acc 2010 chapters 1 4

Problem 2

On June 1, Cindy Godfrey started Divine Design Co a company that provides craft opportunities by investing $12,000 cash in the business. Following are 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 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 Owner’s Drawings 1,300

Prepare an income statement and owner’s equity statement for the month of June, and a balance sheet at June 30, 2017

Date

Title and Explanation

Ref

Debit

Credit