If an amount box does not require an entry, leave it blank.

a. In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:

Potter invested $12,500 cash in the business.
Purchased supplies on account, $6,250.
Paid operating expenses, $5,500.
Billed clients for fees, $7,440.
Received cash from cash clients, $4,700.
Paid creditors on account, $1,400.
Received $3,100 from clients on account.
Withdrew $1,500 cash for personal use.

b. Prepare a trial balance as of June 30 for Potter Pool Servcies.

c. Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June. determine the following:

(1) Net income for the month
(2) Stockholders' equity as of June 30.

a. Record

1.

Cash $12,500 (debit)

Capital $12,500 (credit)

2.

Inventories $6,250 (debit)

Accounts Payable $6,250 (credit)

3.

Operating expenses $5,500 (debit)

Cash $5,500 (credit)

4.

Accounts Receivables $7,440 (debit)

Revenue $7,440 (credit)

5.

Cash $4,700 (debit)

Revenue $4,700 (credit)

6.

Cash $3,100 (debit)

Accounts Receivables $3,100 (credit)

7.

Capital $1,500 (debit)

Cash $1,500 (credit)

b. Trial Balance

                                                                                  Debit           Credit

Cash ($12,500-$5,500-$1,500+$3,100+$4,700) $11,500

Capital ($12,500-$1,500)                                                            $11,000

Inventories                                                              $6,250

Accounts Payable                                                                       $6,250

Operating expenses                                              $5,500

Accounts Receivables ($7,440 - $3,100 )             $4,340

Revenue ($7,440+$4,700)                                                         $12,140

c. (1) Net Income = $5,140

c. (2) Stockholders' equity = $16,140

Explanation:

c. (1) Net Income

Income = Revenue - Expenses

             = $12,140 -  $5,500 - $1,500

             = $5,140

c. (2) Stockholders' equity

Stockholders' equity = Capital + Income

                                   = $11,000 + $5,140

                                   = $16,140

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!