Question

On June 1, 2022, Blossom Company was started with an initial investment in the company of $24,000 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: $ 4,770 Notes payable $12,340 Cash Accounts payable Accounts receivable 4,110 610 Service revenue 7,600 Supplies expense 740 Maintenance and repairs expense Supplies 2,262 690 Utilities expense Advertising expense 400 210 Salaries and wages expense 1,000 Equipment 29,000 Common stock 24,000 During June, the company issued no additional stock but paid dividends of $1,368. Your answer is partially correct.

Answer 1

Blossom Company
Income Statement
for the month ended June 30, 2022
Revenues
Service revenue		$    7,600
Expenses
Advertising expense	$        400
Supplies expense	$        740
Maintenance and repairs expenses	$        690
Utilities expense	$        210
Salaries and wages expense	$    1,000
Total expenses		$    3,040
Net income		$    4,560

Blossom Company
Retained Earnings Statement
for the month ended June 30, 2022
Beginning balance	$             -
Add: Net income	$    4,560
	$    4,560
Less: Dividends	$ (1,368)
Ending balance	$    3,192

Blossom Company
Balance Sheet
As at June 30, 2022
Assets
Cash		$    4,770
Accounts receivable		$    4,110
Supplies		$    2,262
Equipment		$ 29,000
Total Assets		$ 40,142
Liabilities and Stockholders Equity
Accounts payable	$        610
Notes payable	$ 12,340
Total liabilities		$ 12,950
Stockholders Equity
Common stock	$ 24,000
Retained earnings	$    3,192
Total stockholders equity		$ 27,192
Total liabilities and stockholders equity		$ 40,142

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