June 1:
The owner invested 120,000 cash into the business to start operations.
June 3:
The business earned 15,000 in cash by providing services to clients.
June 5:
The business paid 6,000 for the office rent for the month.
June 7:
The business purchased 4,000 worth of supplies. Half was paid in cash (2,000) and the
other half was on account (2,000).
June 10:
The business received 10,000 in cash for additional services rendered.
June 14:
The business paid 7,000 in salaries to its employees.
June 18:
The business purchased equipment worth 25,000, paid in cash.
June 20:
The business obtained a 20,000 bank loan and received the cash.
June 22:
The business paid 1,500 for utilities
June 28:
The owner withdrew 5,000 in cash for personal use.
Date Account Debit Credit
Jun 1 Cash 120,000
Date Account Debit Credit
Capital 120,000
Jun 3 Cash 15,000
Service Revenue 15,000
Jun 5 Rent Expense 6,000
Cash 6,000
Jun 7 Supplies 4,000
Accounts Payable 2,000
Cash 2,000
Jun 10 Cash 10,000
Service Revenue 10,000
Jun 14 Salaries Expense 7,000
Cash 7,000
Jun 18 Equipment 25,000
Cash 25,000
Jun 20 Cash 20,000
Loan Payable 20,000
Jun 22 Utilities Expense 1,500
Cash 1,500
Jun 28 Withdrawals 5,000
Cash 5,000
LEDGER
CASH
Date Debit Credit Balance
Jun 01 Capital Investment 120,000 120,000
Jun 03 Service Revenue 15,000 135,000
Jun 05 Rent Expense 6,000 129,000
Jun 07 Supplies (Cash Part) 2,000 127,000
Jun 10 Service Revenue 10,000 137,000
Jun 14 Salaries Expense 7,000 130,000
Jun 18 Equipment Purchase 25,000 105,000
Jun 20 Loan Received 20,000 125,000
Jun 22 Utilities Expense 1,500 123,500
Jun 28 Owner Withdrawal 5,000 118,500
SUPPLIES
Date Debit Credit Balance
Jun 07 Supplies Purchased 4,000 4,000
EQUIPMENT
Date Debit Credit Balance
Jun 18 Equipment Purchased 25,000 25,000
ACCOUNTS
Date Particulars Debit Credit Balance
Jun 07 Supplies on Credit 2,000 2,000
LOAN PAYABLE
Date Particulars Debit Credit Balance
Jun 20 Loan Received 20,000 20,000
CAPITAL
Date Particulars Debit Credit Balance
Jun 01 Owner's Investment 120,000 120,000
WITHDRAWALS
Date Particulars Debit Credit Balance
Jun 28 Owner Withdrawal 5,000 5,000
SERVICE REVENUE
Date Particulars Debit Credit Balance
Jun 03 Cash Revenue 15,000 15,000
Jun 10 Cash Revenue 10,000 25,000
TRIAL BALANCE
Account Debit Credit
Cash 118,500
Supplies 4,000
Account Debit Credit
Equipment 25,000
Accounts Payable 2,000
Loan Payable 20,000
Capital 120,000
Withdrawals 5,000
Service Revenue 25,000
Rent Expense 6,000
Salaries Expense 7,000
Utilities Expense 1,500
TOTALS 167,000 167,000
COMPREHENSIVE INCOME STATEMENT
Description Amount
Service Revenue 25,000
Less: Expenses
Description Amount
Rent Expense 6,000
Salaries Expense 7,000
Utilities Expense 1,500
Total Expenses 14,500
Net Income 10,500
STATEMENT OF CHANGES IN EQUITY
Description Amount
Beginning Capital 120,000
Add: Net Income 10,500
Less: Withdrawals (5,000)
Ending Capital 125,500
STATEMENT OF FINANCIAL POSITION
As of June 30, 2024
Assets:
Description Amount
Cash 118,500
Supplies 4,000
Equipment 25,000
Total Assets 147,500
Liabilities and Owner’s Equity:
Description Amount
Liabilities:
- Accounts Payable 2,000
- Loan Payable 20,000
Total Liabilities 22,000
Owner’s Equity:
- Ending Capital 125,500
Total Liabilities + Equity 147,500
CASH FLOW STATEMENT
Operating Activities:
Cash proceeds from services: 25,000
Cash payment for rent:6,000
Cash payment for salaries:7,000
Cash payment for utilities:1,500
Net cash from operating activities: 10,500
Investing Activities:
Equipment purchased: (25,000)
Financing Activities:
Loan received: 20,000
Owner’s withdrawal: (5,000)
Net cash from financing activities: 15,000
Net increase in cash: 500
Beginning Cash Balance: 118,000
Ending Cash Balance: 118,500
