Question

GLO205 - Based on Problem 2-2A Gonzalez Engineering completed the following transactions in the month of June. Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements Jun. Jun. 1 Maria Gonzalez, the owner, invested $108,000 cash, office equipment with a value of $7,000, and $64,000 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $51,000 for an office by paying 9,100 cash and signing a long-term note payable for $41,900. Dun. 3. The company purchased a portable building with $53,000 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $4,200 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $7,800 cash. Dun. 6 The company purchased $22,400 of additional drafting equipment by paying $11,500 cash and signing • long-term note payable for $10,900. Jun. 7 The company completed $17,200 of engineering services for a client. This amount is to be received in 30 days. 8 The company purchased $1,350 of additional office equipment on credit. Jun. 9 The company completed engineering services for $22,620 on credit. Jun. 10 The company received a bill for rent of equipment that was used on a recently completed job. The 1,500 rent cost must be paid within 30 days. Dun. 12 The company collected $8,600 cash in partial payment from the client billed on June 9. Jun. 14 The company paid $2,000 cash for wages to a drafting assistant. Jun. 17 The company paid $1,350 cash to settle the account payable created in on June 8. Jun. 20 The company paid $1,025 cash for minor maintenance of its drafting equipment. Jun. 23 The company paid $9,560 cash in dividends. Dun. 26 The company paid $2,000 cash for wages to a drafting assistant. Jun. 29 The company paid $2,660 cash for advertisements on the web during June. Balance Sheet Income Statement Impact on Equity General Journal St Retained Earnings General Ledger Trial Balance Requirement The income statement reports the change in equity attributable to the operation of the business during a specific period of time. Using the dropdown buttons, select the financial statement elements and account titles to be included on the income statement. The account balances will automatically populate. Did the company report net income or net loss during the current month? Show less 7 of 14 < Prex Nad >

Answer 1

Please refer the following image for the solution:  

Gonzalez Engineering Income Statement for the month ended Jun 30 Revenue Engineering Fees Earned $ 47,800 Workings Engineering Fees Earned Journal Entries Jun-05 Cash Engineering Fees Earned $ 7,800 $ 7,800 Total revenue (A) $ 47,800 $ 17,200 Jun-07 Accounts Receivable Engineering Fees Earned $ 17,200 $ 22,800 Expenses Wages Expense $ Equipment Rental Expense $ Advertising Expense $ Repairs Expense $ Jun-09 Accounts Receivable Engineering Fees Earned $ 22,800 4,000 1,500 2,660 1,025 $ Total Expenses (B) Net Income (A-B) $ 1,500 Expenses Journal Entries Jun-10 Equipment Rental Expense Accounts Payable (To record rent) 9,185 38,615 $ $ 1,500 The company report Net Income of $38,615 during the month. $ 2,000 Jun-14 Wages Expense Cash (to record wage expense) $ 2,000 $ 1,025 Jun-20 Repairs Expense Cash (to record payment of repairs) $ 1,025 $ 2,000 Jun-28 Wages Expense Cash (to record wage expense) $ 2,000 $ 2,660 Jun-29 Advertising Expense Cash (to record advertising expense) $ 2,660