Gordon Beckham started his own delivery service, Beckham Deliveries, on June 1, 2012. The following transactions occurred during the month of June.
•June 1 Gordon invested $10,000 cash in the business.
• 2 Purchased a used van for deliveries for $12,000. Gordon 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 $200 on account.
• 20 Received a cash payment of $1,300 for services provided.
• 23 Made a cash payment of $600 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.
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Assets
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Liabilities
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Owner's Equity
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Accounts
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Notes
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Accounts
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Owner's
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Owner's
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Date
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Cash
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+ Receivable
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+ Supplies
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+ Equipment
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= Payable
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+ Payable
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+ Capital
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- Drawings
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+ Revenues
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- Expenses
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(b) Prepare an income statement for the month of June.
(c) Prepare a balance sheet at June 30, 2012.