Nancy Tercek started a delivery service, Tercek Deliveries, on June 1, 2022. The following transactions occurred during the month of June.
June 1 Stockholders invested $10,000 cash in the business in exchange for common stock.
2 Purchased a used van for deliveries for $14,000. Nancy paid $2,000 cash and signed a note payable for the remaining balance.
3 Paid $500 for office rent for the month.
5 Performed $4,800 of services for customer on account.
9 Declared and paid $300 in cash dividends.
12 Purchased supplies for $150 on account.
15 Received a cash payment of $1,250 for services performed on June 5.
17 Purchased gasoline for $100 on account.
20 Performed services for customer for $1,500 cash.
23 Made a cash payment of $500 on the note payable.
26 Paid $250 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid $1,000 for employee salaries.
Instructions
a. Show the effects of the previous transactions on the accounting equation using the following format. Include margin explanations for any changes in revenues or expenses in your analysis.
b. Prepare an income statement and a retained earnings statement for the month of June.
c. Prepare a classified balance sheet at June 30, 2022.
