Preparing An Income Statement

    Resources: Financial Accounting: Tools for Business Decision Making
    Scenario: On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Below are the assets, liabilities, and common stock of the company June 30, 2017, and the revenues and expenses for the month of June, its first month of operations

    Cash  $ 4,600

    Notes payable  $12,000

    Accounts receivable  $4,000

    Accounts payable  $500

    Service revenue     $7,500

    Supplies expense  $1,000

    Supplies  $2,400

    Maintenance and repairs expense  $600

    Advertising expense  $400

    Utilities expense          $300

    Equipment                       $26,000

    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 analyzing your findings using the questions below, in a total of 1,050 words:

    Briefly address whether the company's first month of operations was a success.
    Discuss the company's decision to distribute a dividend.
    Use the Excel® spreadsheet to show your work and submit it with your analysis

    Need a similar essay? We have qualified writers who can assist. Click ORDER NOW to get a special bonus- Up to 18% Discount Offer!!! 

                                                                                                                                      Order Now