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.

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Definitions:

Retrieval Cues

Stimuli or prompts that facilitate the recall of information stored in memory.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and manipulation.

Memory Processing

The method by which the brain encodes, stores, and retrieves information, allowing for learning and retention of experiences.

Free Recall

A memory test in which a person must retrieve information learned earlier, not in any specific order.