Question

Interim statements consist of year-to-date income statements, statements of owner's equity, and balance sheets as of various dates during the fiscal period. Assume that Maria’s Beauty Spa’s fiscal period does not end on June 30 but rather December 31.

Maria's Beauty Spa Adjusted Trial Balance June 30, 20--

ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE

Cash 11,185.00

Accounts Receivable 750.00

Supplies 220.00

Prepaid Insurance 500.00

Accounts Payable 150.00

Maria Costa, Capital 10,520.00

Maria Costa, Drawing 1,200.00

Income from Spa Services 7,500.00

Wages Expense 2,620.00

Rent Expense 700.00

Telephone Expense 65.00

Supplies Expense 585.00

Miscellaneous Expense 345.00

Using the above information complete an interim balance sheet for June for Maria's Beauty Spa. Maria's Beauty Spa Balance Sheet June 30, 20--

Assets $

_________

_________

_________

_________

Total Assets $

Liabilities $

Owner's Equity

__________

Total Liabilities and Owner's Equity $

Answer 1

		Balance sheet
						$	$
		Assets
Current assets:
Cash						11185
Accounts receivable						750
Supplies						220
Prepaid insurance						500
Total current assets							12655
Total assets							12655
		Liabilities and owner's equity
Current liabilities:
Accounts payable					a		150
Owner's equity:
Maria costa,Capital					(Note:1)	13705
Maria costa,Drawing						-1200
Total owner's equity					b		12505
Total liabilities and owner's equity					a+b		12655
Note:1
Maria costa capital will be increased by net income
Net income:
					$	$
Income from spa service						7500
Less:
Wages expense					2620
Rent expense					700
Telephone expense					65
Supplies expense					585
Miscellaneous expense					345	4315
Net income						3185
Maria costa,capital=10520+3185=$ 13705