Question

On June 1, 2022, Wildhorse Co. was started with an initial investment in the company of $19,750 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations:

Cash		$ 4,960		Notes payable		$12,720
Accounts receivable		4,340		Accounts payable		840
Service revenue		7,900		Supplies expense		860
Supplies		2,291		Maintenance and repairs expense		700
Advertising expense		400		Utilities expense		200
Equipment		24,800		Salaries and wages expense		1,000
Common stock		19,750

CHOE Homework You have 12 Days left in your WileyPLUS free trial. Upgrade Now Send to Gradebook < Prev Next > Submitted to Gradebook, Sun, Jan 19, 2020, 12:55:31 PM (America/New York-05:00) Question 4 View Policies Current Attempt in Progress port On June 1, 2022, Wildhorse Co. was started with an initial investment in the company of $19.750 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations: Cash $ 4,960 Notes payable $12,720 Accounts receivable 4,340 Accounts payable 840 Service revenue 7.900 Supplies expense 890 Supplies 2.291 Maintenance and repairs expense 700 Advertising expense 400 Utilities expense Equipment 24.800 Salaries and wages expense Common stock 19.750 During June, the company issued no additional stock but paid dividends of $1.659. 106 AM 121/2020

Answer 1

WILDHORSE CO. INCOME STATEMENT FOR THE MONTH ENDED JUNE 30 ,2022
REVENUE
Service revenue		7900
Operating Expense
Advertising expense	400
supplies expense	860
Maintenance and repairs expense	700
Utilities expense	200
Salaries and wages expense	1000
Total operating expense		(3160)
Net operating income		4740

b)

WILDHORSE CO. RETAINED EARNING STATEMENT FOR THE MONTH ENDED JUNE 30 ,2022
Balance as on 1June 2022	0
Add:Net income	4740
	4740
Less:Dividend	-1659
Balance as on 30 June 2022	3081

c)

WILDHORSE CO. BALANCE SHEET AS ON JUNE 30 ,2022
ASSETS
Cash		4960
Accounts receivable		4340
supplies		2291
Equipment		24800
Total asset		36391
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities
Accounts payable	840
Notes payable	12720
Total liabilities		13560
Stockholders equity
Common stock	19750
Retained earning	3081
Total stockholders equity		22831
Total liabilities and stockholders equity		36391