Question

On June 1, 2017, Wildhorse Co. was started with an initial investment in the company of $22,310 cash. Here are the assets, liabilities, 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 Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock 5,600 Notes payable 4,400Accounts payable 8,500 Supplies expense 2,310 Maintenance and repairs expense $14,000 900 1,090 690 210 2,400 400 27,000 22,310 Utilities expense Salaries and wages expense In June, the company issued no additional stock but paid dividends of $1,610. Prepare an income statement for the month of June Wildhorse Co.

Answer 1

	Income Statement
	for the year ending June 30,2017
Revenue
Service revenue					8,500
Expenses
Advertising expense				400
Supplies expense				1,090
Maintenance and repairs expense				690
Utilities expense				210
Salaries and wages expense				2,400
total operatinge expense					4,790
Net income					3,710
	Retained earnings statement
	For the year June 30,2017
Retained earnings,opening balance				0
Add:	Net income			3,710
				3710
less:	Dividends			1,610
Retained earnings,closing balance				2,100
	Balance sheet
	As on June 30,2017
Assets
Cash				5,600
Accounts receivable				4,400
Supplies				2,310
Equipment				27,000
Total Assets				39,310
Liabilities & Stockholders Equity
Liabilities.
Accounts payable			900
notes payable			14,000
total liabilities				14,900
Stockholders Equity
common stocl			22,310
Retained earnings			2,100
total stockholders Equity				24,410
total liabilities and stockholders equity				39,310