Answer:
Windsor, Inc.
1. Income Statement for the month of June:
Service revenue $ 7,730
Supplies expense 1,100
Maintenance and
repairs expense 700
Advertising expense 400
Utilities expense 200
Salaries & wages expense 1,630
Total expenses $4,030
Net income $3,700
2. Statement of Retained Earnings for the month of June:
Net income $3,700
Dividends paid 1,720
Retained earnings $1,980
3. Balance Sheet as at June 30, 2017:
Assets:
Current Assets:
Cash $ 4,830
Accounts receivable 4,470
Supplies 2,300 $11,600
Long-term assets:
Equipment 26,230
Total assets $37,830
Liabilities + Equity:
Liabilities
Current Liabilities:
Accounts payable $970
Long-term liabilities:
Notes payable 12,460
Total liabilities $13,430
Equity:
Common Stock $22,420
Retained Earnings 1,980 $24,400
Total liabilities + Equity $37,830
Explanation:
a) Data and Calculations:
Trial Balance as of June 30, 2017:
Accounts Titles Debit Credit
Cash $ 4,830
Accounts receivable 4,470
Supplies 2,300
Equipment 26,230
Notes payable $12,460
Accounts payable 970
Service revenue 7,730
Supplies expense 1,100
Maintenance and
repairs expense 700
Advertising expense 400
Utilities expense 200
Salaries & wages expense 1,630
Dividends paid 1,720
Common stock 22,420
Totals $43,580 $43,580
