Matt Stiner started a delivery service, Stiner Deliveries, on June 1, 2014. The
ID: 2450569 • Letter: M
Question
Matt Stiner started a delivery service, Stiner Deliveries, on June 1, 2014. The following transactions occurred during the month of June.
My work was shown as...
Common Stock 17,446
After calculations my Assets=Liabilities+Stockholder's Equity was 31728=10440+21900 (liabilities + equity=32340) I don't know where i went wrong...:(
Also, prepare an income statement and balance sheet for the month of June...
June 1 Stockholders invested $17,446 cash in the business in exchange for common stock. 2 Purchased a used van for deliveries for $14,842. Matt paid $3,938 cash and signed a note payable for the remaining balance.3 Paid $306 for office rent for the month. 5 Performed $4,644 of services on account. 9 Declared and paid $309 in cash dividends. 12 Purchased supplies for $234 on account. 15 Received a cash payment of $1,167 for services provided on June 5. 17 Purchased gasoline for $249 on account. 20 Received a cash payment of $1,666 for services provided. 23 Made a cash payment of $698 on the note payable. 26 Paid $349 for utilities. 29 Paid for the gasoline purchased on account on June 17. 30 Paid $1,255 for employee salaries.
Explanation / Answer
Transaction
Assets=
Liabilities +
Stock Holders Equity
1. Stock Holders investment
Cash $17446
Common Stock $17446
2. Purchased Used Van
Cash -$3938
Notes Payable $10904
Van $14842
3. Office Rent
Cash -$306
Expense -$306
5. Performed Service
Accounts Receivable4644
Revenues 4644
9.Dividend
Cash-$309
Dividends -$309
12.Purchased Supplies
Supplies $234
Accounts Payable $234
15.Cash Received
Cash $1167
Accounts Receivable-$1167
17.Purchased Gasoline
Gasoline 249
Accounts Payable $249
20. Cash Payment for Service
Cash $1666
Revenue $1666
23. Cash Payment on Notes
Cash -$698
Note Payable -$698
26. Paid Utilities
Cash -$349
Utilities -$349
29. paid Gasoline purchased on 17th
Cash-$249
Accounts Payable-$249
30.Employee Salaries
Cash -$1255
Expenses-$1255
Total
$31977
$10440
$21537
Income Statement
Revenues
Service Revenues($4644+1666)
$6310
Expenses
Office Rent
$306
Utilities
$349
Salaries
$1255
Total
$1910
Net Income
$4400
Balance Sheet
Asset
Liabilities
Cash
$13175
Notes Payable
$10206
Van
$14842
Accounts Payable
$234
Accounts Receivable
$3477
Stock Holders Equity
$21537
Supplies
$234
Gasoline
$249
$31977
$31977
Notes:
1. Beginning Stockholders Equity - $0
+ Stock Holders Investment - $17446
+ Net Income - $4400
Sub Total - $21846
Dividend-$309
Stock Holder Equity - $21537
2. Opening Cash balance - $0
+Cash Investment - $17446
+Cash Sales - $1666
+Received from A/c Receivable - $1167
Sub total - $20279
- Cash payment-Van - $3938
- Office rent - $306
- Dividend - $309
- Payment on Notes - $698
- Paid Utilities - $349
- paid Gasoline A/c payable - $249
- Paid Salaries - $1255
Sub Total - $7104
Cash Payment - $13175
Transaction
Assets=
Liabilities +
Stock Holders Equity
1. Stock Holders investment
Cash $17446
Common Stock $17446
2. Purchased Used Van
Cash -$3938
Notes Payable $10904
Van $14842
3. Office Rent
Cash -$306
Expense -$306
5. Performed Service
Accounts Receivable4644
Revenues 4644
9.Dividend
Cash-$309
Dividends -$309
12.Purchased Supplies
Supplies $234
Accounts Payable $234
15.Cash Received
Cash $1167
Accounts Receivable-$1167
17.Purchased Gasoline
Gasoline 249
Accounts Payable $249
20. Cash Payment for Service
Cash $1666
Revenue $1666
23. Cash Payment on Notes
Cash -$698
Note Payable -$698
26. Paid Utilities
Cash -$349
Utilities -$349
29. paid Gasoline purchased on 17th
Cash-$249
Accounts Payable-$249
30.Employee Salaries
Cash -$1255
Expenses-$1255
Total
$31977
$10440
$21537