Question

On June 1, 2017, Windsor, Inc. was started with an initial investment in the company of $22,420 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:
Cash$ 4,830
Notes payable$12,460
Accounts receivable4,470
Accounts payable970
Service revenue7,730
Supplies expense1,100
Supplies2,300
Maintenance and repairs expense700
Advertising expense400
Utilities expense200
Equipment26,230
Salaries and wages expense1,630
Common stock22,420
In June, the company issued no additional stock but paid dividends of $1,720.
Prepare an income statement for the month of June."

Answer 1

Answer:

The Preparation of an income statement for the month of June is shown below:-

Explanation:

                               Windsor Inc

                   Retained Earnings Statement

                  For the year ending June 30,2017

Revenues

Service revenues                                            $7,730

Expenses

Advertisement Expenses                  $400

Supplies expenses                             $1,100

Maintenance and repair expenses    $700

Utilities expenses                                $200

Salaries and Wages expenses           $1,630

Total Expenses                                                $4,030

Net Income (Loss)                                           $3,700