Acc280 Financial Accounting: P1-3B Divine Cosmetics Co., a company that provides individual skin

Acc280 Financial Accounting
P1-3B
Divine Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $26,200 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June.
Cash $11,000 Service Revenue $6,000
Accounts Receivable $4,000 Supplies Expense $1,600
Cosmetic Supplies $2,000 Gas and Oil Expense $800
Equipment $25,000 Advertising Expense $500
Notes Payable$13,000 Utilities Expense $300
Accounts Payable $1,200

Stockholders made no additional investments in June. The company paid a cash dividend of $1,200 during the month.

Instructions:
1. Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2008.
2. Prepare and income statement and a retained earnings statement for June assuming the following data are not included above: (1) $800 of revenue was earned and billed but not collected at June 30¸ and (2) $100 of gas and oil expense was incurred but not paid.
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