Question

Pom's Cleaning Service Pom David opened Pom's Cleaning Service Company on July 1, 2017. These transactions were accomplished during july. July 1 Pom invested $20,000 cash in the company. 1 Acquired used car for $12,000, paying $4,000 cash and the balance on account. 3 Acquired cleaning supplies for $2,100 on account. 5 A 1-year insurance policy effective July 1 is paid $1,800 on cash. 7 Paid $350 as fuel bill for the car. 12 Billed clients $4,500 for cleaning services. 18 Paid $1,400 on amount owed on cleaning supplies and $1,500 cash on amount owed on car. 21 Received $3,400 cash from clients billed on July 12. 25 Billed clients $6,000 for cleaning services 30 Employee wages are paid $2,800 on cash. 31 declared and paid a cash dividend to shareholders $5,600. Additional information: (1) Accrued but unpaid employee wages were $1,000 (2) Depreciation on equipment on July was $500. (3) Unbilled and uncollected revenue for services performed at July 31 were $2,700. (4) Policy of the insurance expired for July. (5) An inventory count displays $600 of cleaning supplies on hand at July 31.

1- Prepare Income Statement

2- Prepare retained earnings statement

Answer 1

1.

Pom's Cleaning Service
Income Statement
For the Month Ended July 31, 2017
Revenue		$   13,200
Wages Expense	$    3,800
Insurance Expense	$        150
Depreciation	$        500
Fuel Expenses	$        350
Supplies Expense	$    1,500
Total Expenses		$     6,300
Net Income		$     6,900

2.

Pom's Cleaning Service
Statement of Retained Earnings
For the Month Ended July 31, 2017
Net Income		$     6,900
Dividend		$   (5,600)
		$     1,300