Answer:
1) since there is not enough room here, i used an excel spreadsheet to answer question 1.
2) PS Music
Income Statement
For the month ended June 30, 2016
Revenues $6,200
Expenses:
- Rent expense $800
- Music expense $1,590
- Advertisement expense $500
- Wages expense $400
- Utilities expense $300
- Supplies expense $180
- Miscellaneous expenses $415 <u>($4,185)</u>
Net income $2,015
3) PS Music
Statement of Owner’s Equity
For the month ended June 30, 2016
Smith, Peyton, capital beginning balance June 1, 2016 $4,000
<u>Net income $2,015</u>
Subtotal $6,015
<u>Drawings ($500)</u>
Smith, Peyton, capital ending balance June 30, 2016 $5,515
4) PS Music
Balance Sheet
For the month ended June 30, 2016
Assets:
Cash $4,020
Accounts receivable $1,000
Supplies $170
Equipment $675
Total assets $5,865
Liabilities:
Accounts payable $350
Equity:
Smith, Peyton, capital $5,515
Total liabilities + equity $5,865