accounting for manager

11/28/2020 Problem 3-7

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Problem 3-7 Nancy Tercek started a delivery service, Martinez Deliveries, on June 1, 2017. The following transactions occurred during the month of June.

June 1 Stockholders invested $18,600 cash in the business in exchange for common stock.

2 Purchased a used van for deliveries for $14,900. Nancy paid $3,900 cash and signed a note payable for the remaining balance.

3 Paid $700 for office rent for the month.

5 Performed $4,600 of services on account.

9 Declared and paid $200 in cash dividends.

12 Purchased supplies for $200 on account.

15 Received a cash payment of $1,300 for services performed on June 5.

17 Purchased gasoline for $100 on account.

20 Received a cash payment of $1,700 for services performed.

23 Made a cash payment of $500 on the note payable.

26 Paid $350 for utilities.

29 Paid for the gasoline purchased on account on June 17.

30 Paid $1,030 for employee salaries.

Show the effects of the previous transactions on the accounting equation using the following format. (If a transaction causes a decrease in Assets, Liab parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

MARTINEZ DELIVERIES

Assets = Liabilities + Stockhold

R

Date

Cash + Accounts

Receivable +

Supplies +

Equipment = Notes

Payable + Accounts Payable +

Common Stock +

Revenues

June 1 $ $ $ $ $ $ $ $

2

3

5

9

12

15

17

20

23

26

29

30

$ $ $ $ = $ $ $ $

Prepare an income statement for the month of June.

MARTINEZ DELIVERIES Income Statement

$

$

11/28/2020 Problem 3-7

https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 2/2

Question Attempts: 0 of 2 used

$

Prepare a retained earnings statement for the month of June. (List items that increase retained earnings first.)

MARTINEZ DELIVERIES Retained Earnings Statement

$

:

:

$

Prepare a classified balance sheet at June 30, 2017. (List Current Assets in order of liquidity.)

MARTINEZ DELIVERIES Balance Sheet

Assets

$

$

$

Liabilities and Stockholders' Equity

$

$

$

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