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Accounting Sheet 1 + Model Answer

Mark Miller started Miller Deliveries on June 1, 2010. During the month, various transactions occurred including investing cash, purchasing a van, paying rent and salaries, and receiving payments from customers. The income statement for June shows revenues of $18,650 and expenses of $1,850 for net income of $16,800. The owner's equity statement shows initial capital of $10,000 plus retained earnings of $16,600 for total equity of $26,600. The balance sheet lists assets like cash, accounts receivable, and equipment and liabilities like accounts payable and a note payable, with total assets and equity of $36,250.

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74 views

Accounting Sheet 1 + Model Answer

Mark Miller started Miller Deliveries on June 1, 2010. During the month, various transactions occurred including investing cash, purchasing a van, paying rent and salaries, and receiving payments from customers. The income statement for June shows revenues of $18,650 and expenses of $1,850 for net income of $16,800. The owner's equity statement shows initial capital of $10,000 plus retained earnings of $16,600 for total equity of $26,600. The balance sheet lists assets like cash, accounts receivable, and equipment and liabilities like accounts payable and a note payable, with total assets and equity of $36,250.

Uploaded by

Ibrahim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Faculty of Engineering GEN 3005 FALL 2021

Cairo University Accounting Sheet 1


Mark Miller started his own delivery service, Miller Deliveries, on June 1, 2010.The following
transactions occurred during the month of June.

June 1 Mark invested $10,000 cash in the business.


2 Purchased a used van for deliveries for $12,000. Mark paid $2,000 cash and signed a note
payable for the remaining balance.
3 Paid $500 for office rent for the month.
5 Performed $4,400 of services on account.
9 Withdrew $200 cash for personal use.
12 Purchased supplies for $150 on account.
15 Received a cash payment of $1,250 for services provided on June 5.
17 Purchased gasoline for $100 on account.
20 Received a cash payment of $1,500 for services provided.
23 Made 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.

(b) Prepare an income statement at June 30, 2010.


(c) Prepare an owner’s equity statement at June 30, 2010
(d) Prepare a balance sheet at June 30, 2010.
Answer
a)

b)

Miller Deliveries
Income Statement
For the Month Ended June 30, 2010
Sales Revenues: $18,650

- Expenses: -$500
-$100
-$250
-$1000

- Total expenses -$1,850

Net income: $16,800


c)

Miller Deliveries
Owner’s Equity Statement
June 30, 2010

Capital: 10.000

Retained Earnings:
Revenues: 18,650
-Expenses -1,850
-Drawings -200

16.600

Total Owner’s equity: 26,600

d)

Miller Deliveries
Balance Sheet
June 30, 2010
Assets: Liabilities:
Cash 12,700 Accounts payable 150
Accounts receivable 11,400 Notes payable 9,500
Equipment 12,000
Supplies 150 Total liabilities: 9,650

Owner’s Equity:
Capital: 10,000
Retained earnings 16,600

Total owner’s equity 26.600

Total: $36,250 Total: $36,250

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