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Homework answers / question archive / Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of June by organizing your answer in tabular form, using the column headings shown
Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of June by organizing your answer in tabular form, using the column headings shown. use I for increase, D for decrease, and NE for no effect.
income statement balance sheet
_____________________ ________________________
revenue-expenses=net income assets+liabilities=owner's equity
transactions:
june 1st: the company issues 60,000 shares of capital stock to wendy winger in exchange for $60,000 cash
june 2nd: purchased a plane from utility aircraft for $220.000. made a $40,000 cash down payment and issued a note payable for the remaining balance.
june 4th: paid woodrow airport $2,500 to rent office and hangar space for the month.
june 15th: billed customers $8,320 for aerial photographs taken during the first half of june.
june 15th: paid $5,880 in salaries earned by employees during first half of june.
june 18th: paid hannigan's hangar $1,890 for maintenance and repair services on the compnay plane.
june 25th: collected $4,910 of the amounts billed to customers on june 15th.
june 30th: billed customers $16,450 for aerial photographs taken during the second half of the month.
june 30th: paid $6,000 in salaries earned by employees during the second half of the month.
june 30th: received a $2,510 bill from peatree petroleum for aircraft fuel purchased in june. the entire amount is due july 10th.
june 30th: declared a $2,000 dividend payable on july 15th.
please see the attached for excel file.
thank you.
Asset Liab Equity Revenue Expense Net Income
Debit cash $60,000 I
Credit capital stock $60,000 I
Debit Aircraft $220,000 I
Credit Cash $40,000 D
Note payable $180,000 I NE
Debit Rent expense $2500 I D
Credit Cash $2500 D D
Debit Accounts receivable $8320 I I
Credit Photo Revenue $8320 I I
Debit payroll expense $5880 I D
Credit Cash $5880 D D
Debit Repairs and maintenance $1890 I D
Credit Cash $1890 D D
Debit Cash $4910 I
Credit Accounts receivable $4910 I NE
Debit Accounts receivable $16,450 I
Credit Photo Revenue $16,450 I I I
