Solved

Prepare an Income Statement and a Statement of Owner's Equity

Question 147

Essay

Prepare an income statement and a statement of owner's equity for the month of June.Also,prepare a balance sheet at June 30.The transactions of Magna Designer Company for the first month of their operations are as follows:
• On June 1,2017,the owner Carlos Magna Designer contributed $25,000 cash to establish the business.
• The company rendered services to three clients on account with total revenues earned of $9,000.
• It then incurred an advertising expense on four different websites and promised to pay a total of $1,200 at a later date.
• On June 13,Magna Designer purchased $1,000 worth of office supplies for cash.(The supplies are not used by June 30. )
• On June 22,it received $2,000 on account from a client and deposited it into the business account.
• On June 23,it incurred $1,300 for a legal expense and paid cash.
• On June 30,Magna Designers made a payment of $500 to one of the websites that it owed for advertising provided earlier in the month.
• No owner withdrawals were paid during the month.

Correct Answer:

verifed

Verified

blured image
Revenues: blured image
Expenses: blured image
blured image
...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents