Question

Question 3 [35 points] On June 1, 2014, Kevin Smith organized a new company called Gulf Corp. On the last day of that month, the company's records showed the items listed below. Use this information to prepare the June income statement and statement of changes in equity as well as the balance sheet at June 30 for Gulf Corp Account Accounts payable Accounts receivable Cash Commissions samed Dividends Interest eamed Property taxes payable Rent earned Share capital Store supplies expense Ultes expense Balance a) Complete the income statement using the format provided 68.000 Gul Corp. 133.500 Income Statement 40.000 For the Month Ended June 30, 2014 111,000 Revenues 28.000 X Commissions earned 111,000 45,000 Interest earned 45,000 19,500 Rent earned 87.000 Total revenues 68,000 Expenses 94,000 x Store Supplies expense 94.000 103,000 X U tilities expense Total expenses Net income 46,000 b) Complete the statement of changes in equity using the format provided Guil Corp. Statement of Changes in Equity For Month Ended June 30, 2014 Share Retained Total Capital Eamings Equity c) Complete the Balance Sheet Gur Corp Balance Sheet For the Month Ended June 30, 2014 Accounts receivable 133,500 x Accounts payable Property taxes payable X 173,500

Answer 1

Gruff CORP Balance sheel- For the month cended June 30, 2014 Assets Liabilities A ecounts Receivables 133,500 Accounts payable I Property tax payable 40,000 68,000 19,500 87,500 Cash Equity Share capital Retained Earnings. 1173.5ool Total liabilities & Eauity 68,000 18,000 86,000 1173,500