• June 1: Owner contributed $50,000 in cash to the business.

Question

• June 1: Owner purchased a company vehicle in the amount of $15,000.
• June 3: Owner took out a small business loan in the amount of $25,000.
• June 5: Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.
• June 5: Owner paid business license fees in the amount of $250 to the county.
• June 5: Owner ordered office supplies, on account, in the amount of $750.00.
• June 6: Owner performed service for client on account in the amount of $1,000.
• June 9: Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.
• June 10: Owner paid $250 in advertising costs to the local paper.
• June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.
• June 15: Owner prepaid business insurance to cover July through December at the rate of $125 per month.
• June 20: Owner paid wages due to part-time employee from period ending June 15.
• June 21: Owner paid for plumbing repairs in the office in the amount of $210.
• June 22: Owner withdrew $1,000 cash for personal use.
• June 23: Customer paid balance due from June 6 service in the amount of $1,000.
• June 25: Owner provided service to client in the amount of $800. Client paid at time of service.
• June 28: Owner paid balance due for office supplies purchase on June 5.
• June 29: Owner performed service for client on account in the amount of $2,225.00.
• June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July.
• June 30: Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5.
• June 30: Record depreciation on vehicle at $250.
make me a income statement

Answer 1

To create an income statement for the month of June based on the transactions provided, we will summarize the revenues and expenses during that month.

Income Statement for June

Revenues:

1. Service Revenue (from various client services):
   • June 6: $1,000
   • June 9: $1,500 (Customer paid $750, remaining $750 billed)
   • June 25: $800
   • June 29: $2,225
   • Total Revenues = $1,000 + $1,500 + $800 + $2,225 = $5,525

Expenses:

1. Rent Expense (June rent + prepaid rent for July-December):

   • Rent for June: $1,195
   • Total Rent Expense = $1,195

2. Business License Fees:

   • $250

3. Advertising Expense:

   • $250

4. Wages Expense:

   • Wages due on June 15: $325 (paid on June 20)
   • Wages due for June 16 - June 30: $325 (to be paid on July 5)
   • Total Wages Expense = $325 + $325 = $650

5. Office Supplies Expense:

   • Supplies ordered but not yet expensed. Only the cash payment has been made on June 28 which clears off the liability but is not considered an expense as it was not consumed yet for the month.

6. Plumbing Repairs:

   • $210

7. Telephone Bill (expense recorded in June but will be paid in July):

   • $155

8. Depreciation Expense (Vehicle):

   • $250

Total Expenses:

• Rent Expense: $1,195
• Business License Fees: $250
• Advertising Expense: $250
• Wages Expense: $650
• Plumbing Repairs: $210
• Telephone Bill: $155
• Depreciation: $250

Total Expenses = $1,195 + $250 + $250 + $650 + $210 + $155 + $250 = $2,960

Net Income Calculation

Net Income = Total Revenues - Total Expenses
Net Income = $5,525 - $2,960 = $2,565

Summary

Income Statement for June:

• Total Revenues: $5,525
• Total Expenses: $2,960
• Net Income: $2,565

This income statement summarizes the revenues and expenses of the business for the month of June, clearly indicating a profitable month with a net income of $2,565.