Financial statement 1. (40 points) On July 2, you started a new company to paint

Question

Financial statement 1. (40 points) On July 2, you started a new company to paint metal products. You hope to receive business from local companies that need their metal products painted. The following transactions occurred during the month of July. Write so that you can do your work on the front and back of these pages July Received $38,000 cash from investors Received $5,000 cash for products painted for a local company Paid $1200 for paint supplies Painted more metal parts, and billed the customer for 56,200. The money will be received in August Paid $900 for maintenance expenses Purchased painting equipment for $8,500. This was purchased with a down payment of $2,000 with the remaining balance due next month Paid utility bills of $350 Paid $1,700 in salaries. 10 14 18 23 24 29

Explanation / Answer

NOTE: INVESTMENT DONE ON JULY 2 IS CONSIDERED TO BE EQUITY , IF YOU TAKE IT AS DEBT JUST CHANGE THE CLASSIFIACTION IN BALANCE SHEET

income statement SALES($5600+$6,200) $11,800 TOTAL REVENUE FROM OPERATIONS(A) $11,800 EXPENSES: PURCHASES $1,200 MAINTENANCE EXPENSES $9,000 UTILITY EXPENSES $350 SALARY EXPENSES $1,700 TOTAL EXPENSES(B) $12,250 PROFIT/LOSS FROM OPERATIONS(A-B) ($450)

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