Prepare an Income Statement and a Statement of Retained Earnings $\$ 9,000$

question 142

Essay

Prepare an income statement and a statement of retained earnings for the month of June.Also,prepare a balance sheet at June 30.The transactions of Magna Designer Corporation for the first month of their operations are as follows:
? On June 1, 2015, Magna Designer Coporation received \$25,000 cash from its stockholders and gave common stock to the stockholders.
? The company rendered services to three clients on account with total revenues earned of $\$ 9,000$ .
? It then incured advertising expense on four different websites and promised to pay a total of \$1,200 at a later date.

? On June 13, Magna Designers purchased $\$ 1,000$ of office supplies for cash. (The supplies are not used by June 30.)

? On June 22, it received $\$ 2,000$ on account from its client and deposited it into the business account.
? On June 23, it incured \$1,300 for legal expense and paid cash.
? On June 30, Magna Designers made a payment of $\$ 500$ to one of the websites that it owed for advertising provided earlier in the month.
? No dividends were given during the month.

---

Definitions:

Emotional Intelligence

The ability to recognize, understand, manage, and reason with emotions in oneself and others.

Crystallized Intelligence

The ability to use learned knowledge and experience effectively.

Fluid Intelligence

The capacity to solve novel problems, reason abstractly, and adapt to new situations, without relying on pre-existing knowledge.

Accumulated Knowledge

The total information and skills that an individual has gathered over a period of time from experiences, education, and training.