Need help with equity Problem 1-03A a1-a3,b1-b2 (Part Level Submission) On June
ID: 2337732 • Letter: N
Question
Need help with equity
Problem 1-03A a1-a3,b1-b2 (Part Level Submission) 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 Accounts Receivable Supplies Equipment Notes Payable Accounts Payable $6,500 500 1,600 200 150 $10,150 Service Revenue 2,800 Advertising Expense 2,000 Rent Expense 10,000 Gasoline Expense 9,000 Utilities Expense 1,200 Cindy made no additional investment in June but withdrew $1,300 in cash for personal use during the month.Explanation / Answer
Answer:
Devine Design Company
owner's Equity statement
For the year Ended December 31-2020
Particular
Amount $
Owner's capital , June 1
0
Add: Investment
12,000
Add net income
4,050
4,050
less: Drawing
1,300
Owner's capital , DJune 31
2,750
Working note for the above answer is as under
Calculation of the Net income
Legal service revenue
6,500
Less:
Adverise Expanses
500
Rent Expanses
1,600
gasolin Expanses
200
Utility Expanses
150
Net income
4,050
Devine Design Company
owner's Equity statement
For the year Ended December 31-2020
Particular
Amount $
Owner's capital , June 1
0
Add: Investment
12,000
Add net income
4,050
4,050
less: Drawing
1,300
Owner's capital , DJune 31
2,750