Question

Wiew Policies Current Attempt in Progress On June 1, 2022, Blossom Company was started with an initial investment in the company of $20,000 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 Accounts receivable Notes payable Accounts payable Supplies expense Maintenance and repairs expense Service revenue $4,700 4,100 7,600 2,460 400 24,200 20,000 $12,200 600 1,000 610 290 1,500 Supplies Advertising expense Utilities expense Equipment Salaries and wages expense Common stock During June, the company issued no additional stock but paid dividends of $1,140.

Answer 1

1)

BLOSSOM COMPANY
Income Statement
For the Month Ended June 30, 2022
Revenues
Service revenue		$7600
Expenses:
Advertising expense	400
Supplies expense	1000
Maintenance and repairs expense	610
Utilities expense	290
Salaries and wages expense	1500
Total expenses		-3800
Net income (loss)		$3800

2)

BLOSSOM COMPANY
Retained Earnings Statement
For the Month Ended June 30, 2022
Retained earnings, June 1	$0
Add: Net income	3800
	3800
Less: Dividends	-1140
Retained earnings, June 30	$2660

3)

BLOSSOM COMPANY
Balance Sheet
June 30, 2022
Assets
Cash		$4700
Accounts receivable		4100
Supplies		2460
Equipment		24200
Total Assets		$35460
Liabilities and Stockholders' Equity
Liabilities
Notes Payable	$12200
Accounts Payable	600
Total liabilities		$12800
Stockholders' Equity
Common Stock	20000
Retained earnings	2660
Total Stockholders' Equity		22660
Total liabilities and stockholders' equity		$35460