Mike Bean opens a garden supply shop. During September, the first month of operation, he experienced
Mike Bean opens a garden supply shop. During September, the first month of operation, he experienced the following events:
09/01Owner contributes $7,500 in cash to capitalize the business
09/08Purchased $2,500 in garden equipment/supplies on account, payable in 30 days.
09/15Paid first months shop rent of $1,000.
09/17Sold garden equipment that cost $800 for $1,100; collected $400 cash; billed customers for the balance.
09/25Collected $425 from customers on accounts.
09/28Paid $500 to suppliers for parts purchased earlier this month.
1.Prepare journal entries for the preceding transactions.
2.Prepare income statement for the month ended 09/30/XX
3.Prepare the balance sheet for 09/30/XX.