Reference no: EM132720736

Problem - Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a part-time assistant to answer the phone and handle third-story work. (Lisa is afraid of heights.) The transactions for the month of July are as follows:

(a) On the first day of the month, Vozniak invested cash by making a deposit in a bank account for the business, $8,000.

(b) Paid rent for July, $150.

(c) Purchased a used van for cash, $5,000.

(d) Purchased tools on account from Clean Tools, $600.

(e) Purchased cleaning supplies that cost $300. Paid $200 cash and will pay the balance next month, $100.

(f) Paid part-time assistant (wages) for first half of month, $100.

(g) Paid for advertising, $75.

(h) Paid two-year premium for liability insurance on van, $480.

(i) Received cash from clients for services performed, $800.

(j) Performed cleaning services for clients on account, $500.

(k) Paid phone bill, $40.

(l) Received cash from clients for window cleaning performed on account in transaction (j), $200.

(m) Paid part-time assistant (wages) for last half of month, $150.

(n) Made partial payment on tools purchased in transaction (d), $200.

(o) Earned additional revenues amounting to $800: $600 in cash and $200 on account.

(p) Vozniak withdrew cash at the end of the month for personal expenses, $100.

REQUIRED - Prepare an income statement for We Do Windows for the month of July 20--.