Question Completion:
Cash $ 4,600
Accounts receivable 4,000
Supplies 2,400
Equipment 26,000
Total assets $37,000
Notes payable $12,000
Accounts payable 500
Service revenue 7,500
Supplies expense 1,000
Maintenance and repairs expense 600
Advertising expense 400
Utilities expense 300
Salaries and wages expense 1,400
Common stock 22,100
In June, the company issues no additional stock but paid dividends of $1,400.
Prepare an income statement, retained earnings statement, and balance sheet.
Check figures:
· Net income is $3,800.
· Total assets are $37,000.
· Total liabilities are $12,500.
Answer:
Elite Service Co.
a) Income Statement for the month of June 30, 2022:
Service revenue $7,500
Supplies expense $1,000
Maintenance and repairs expense 600
Advertising expense 400
Utilities expense 300
Salaries and wages expense 1,400 3,700
Net Income $3,800
b) Retained Earnings Statement for the month of June 30, 2022:
Net Income $3,800
Dividends paid 1,400
Retained Earnings $2,400
c) Balance Sheet as of June 30, 2022:
Cash $ 4,600
Accounts receivable 4,000
Supplies 2,400
Equipment 26,000
Total assets $37,000
Notes payable $12,000
Accounts payable 500
Total liabilities $12,500
Common stock 22,100
Retained Earnings $2,400
Total liabilities + Equity $37,000
Explanation:
Data and Calculations:
Cash $ 4,600
Accounts receivable 4,000
Supplies 2,400
Equipment 26,000
Total assets $37,000
Notes payable $12,000
Accounts payable 500
Common stock 22,100
