Question Completion:
Cash             $ 4,600
Accounts receivable  4,000
Supplies            2,400 Â
Equipment        26,000
Total assets      $37,000
Notes payable    $12,000
Accounts payable     500
Service revenue    7,500
Supplies expense   1,000 Â
Maintenance and repairs expense  600
Advertising expense  400 Â
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 Â
Maintenance and repairs expense   600
Advertising expense              400 Â
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 Â
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 Â
Equipment        26,000
Total assets      $37,000
Notes payable    $12,000
Accounts payable     500
Common stock    22,100
