The following transactions took place in McIntyre Builders Corporation during June 2015, its first month of operations.

 

Jun.

1 Issued share capital for $8,000 cash

1 Purchased $5,000 equipment on credit

2 Collected $600 cash for renovations completed today

3 Paid $20 for supplies used June 2

4 Purchased $1,000 supplies on credit (record supplies as an asset)

5 Billed customers $2,500 for renovations completed to date

8 Collected $500 of the amount billed June 5

10 Paid half of the amount owing for equipment purchased June 1

15 Sold excess equipment for a promise from the buyer to pay $1,000 in the future. The same amount is the same as the original cost of this equipment. Record as a loan payable.

18 Paid for the supplies purchased June 4

20 Received a bill for $100 for electricity used to date (record as utilities expense)

22 Paid $600 to the landlord for June and July rent (record as prepaid expense)

23 Signed a union contract

25 Collected $1,000 of the amount billed June 5

27 Paid the following expenses: advertizing, $150; telephone, $50; truck operating expense (repairs, gas), $1,000; wages, $2,500

30 Billed $2,000 for repairs completed to date

30 Transferred the amount for June rent to rent expense

30 Counted $150 of supplies still on hand (recorded the amount used as an expense)

30 Paid $30 dividend in cash.

Required:

1. Record the above transactions on a transactions worksheet and calculate the total of each column at the end of June. Use the following headings on your worksheet.

2. Prepare an income statement and statement of changes in equity for the one-month period ended June 30, 2015 and a balance sheet at June 30. Identify the revenue earned as “Renovations”. Record the expenses on the income statement in alphabetical order.