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On June 1, 2017, Vaughn Manufacturing was started with an initial investment in the company of $22.410 cash. Here are the assets, liabl and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations Cash $5,420 Notes payable $13,640 Accounts receivable Accounts payable 970 4,470 8,320 Service revenue Supplies expense 1,080 Supplies Maintenance and repairs expense 680 Advertising expense 2,320 400 26,820 Utilities expense 220 2,220 Equipment Salaries and wages expense Common stock 22,410 In June, the company issued no additional stock but paid dividends of $1.710. Prepare an income statement for the month of June. Vaughn Manufacturing Income Statement

Answer 1

Income statement :

Vaughn manufacturing
Income statement
For the month ended June 30, 2017
Service revenue		$8320
(-) Expenses:
Advertising expense	$400
Supplies expenses	$1080
Maintenance and repairs expense	$680
Utility Expense	$220
Salaries and wages expense	$2220
Total expenses		$4600
Net income		$3720

Retained earnings statement:

Vaughn manufacturing
Retained earnings statement
As on June 30, 2017
Opening balance of retained earnings		$0
Add:	Net profit for the month	$3720
		$3720
Less:	Dividend for the month	($1710)
Closing balance of retained earnings		$2010

Balance Sheet:

Vaughn manufacturing
Balance Sheet
As on June 30, 2017
Assets
Equipment		$26820
Accounts receivable		$4470
Supplies		$2320
Cash		$5420
Total Assets		$39030
Liabilities and stockholders equity
Liabilities
Notes payable	$13640
Accounts payable	$970
Total liabilities		$14610
Stockholders equity
Common stock	$22410
Retained earnings	$2010
Total Stockholders equity		$24420
Total Liabilities and stockholders equity		$39030