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