Question

Required information The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $78,000 (Transaction 1) Liab. + Accts. Pay Assets Owner 's Equity Accts G. Sawyer, Capital +78,000 Transaction Cash Rec. Supp. Equip. Rev. Exp +78,000 -8,200 +8,200 +5,200 +5,200 +3,680 +3,680 -3,500 +670 2,400 450 -3,500 -670 -2,400 +450 Bal 64,120+4,530 450+ 11,8803,680+75,600 5,2003,500 What was the net income or net loss for Sawyer Architecture Services for the month of June?

Answer 1

Answer :

The Net Income for Sawyer Architecture Services for the month of June is $ 1,700

Working Notes :-

1. Net income / (loss) for Sawyer Architecture Services for the month of June

Revenue - Expenses = $(5,200 - 3,500) = $1,700

2. Balance sheet of Sawyer Architecture Services

ASSETS	Amount ($)	LIABILITIES AND OWNER'S EQUITY	Amount ($)
Current Assets :		Current Liabilities :
Cash	$64,120	Accounts payable	3,680
Accounts receivable	4,530	Total liabilities	$ 3,680
Supplies	450
Non Current Assets :		Owner's Equity :
Equipment	11,880	Owner's Capital $78,000 Less : Drawings (2,400)	75,600
		Retained earnings	1,700
Total Assets	$80,980	Liabilities and Owner's Equity	$80,980