problem 3-6 - Using a Trial Balance to Prepare an Income Instructions Use the data...
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problem 3-6 - Using a Trial Balance to Prepare an Income Instructions Use the data above to prepare an income statement for Jack's Tax Service for the month of June 205 and a balance sheet at June 30,205. Hint: Since Jack's Tax Service is a new company its Retained Earnings balance at June 30 will be equal to the net income for the month of June. Be sure to include a proper heading for each financial Statement. Instructions Prepare an analysis of each of the above transactions which shows which accounts will change a result of each transaction. The September 1 transaction serves as an example of the form of analysis to be used. September 1 - Cash has been invested in the business therefore the asset Cash was increased by $400,000. Capital Stock has been issued to the owner, Sid Simon. Increases in ownership investment are recorded by increasing the Capital Stock account by $400,000. Summary for this entry: Cash +$400,000, Capital Stock +$400,000
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