Question

On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

June
1
Kris transferred cash from a personal bank account to an account to be used for the business, $35,000.

1
Paid rent for period of June 1 to end of month, $4,750.

6
Purchased office equipment on account, $14,100.

8
Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder.

10
Purchased supplies for cash, $2,380.

12
Received cash for job completed, $12,200.

15
Paid annual premiums on property and casualty insurance, $3,600.

23
Recorded jobs completed on account and sent invoices to customers, $11,900.

24
Received an invoice for van expenses, to be paid in June, $1,500.

Enter the following transactions on Page 2 of the two-column journal:

June
29
Paid utilities expense, $3,100.

29
Paid miscellaneous expenses, $950.

30
Received cash from customers on account, $7,330.

30
Paid wages of employees, $5,070.

30
Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,825.

30
Withdrew cash for personal use, $1,600.

4.
Determine the excess of revenues over expenses for June.

Answer 1

Income Statement
Particulars	Amount
Income
Fees Earned	$24,100
Total Income (A)	$24,100
Expenses
Rent Expenses	$4,750
Utilities Expenses	$3,100
Miscellaneous Expenses	$950
Wages	$5,070
Insurance Expenses	$3,600
Van Expenses	$1,500
Total Expenses (B)	$18,970
Excess of Revenue Over Expenditure (A-B)	$5,130
* Calculation shows the Excess of revenue over expenditure as per data given, but data about Use of Supplies and Depreciation On Van is not given, so it might be changed if information provided