Question

Problem 1-3 (Part Level Submission) On June 1, 2017, Sunland Company was started with an initial investment in the company of $22,470 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: $ 4,770 Cash Notes payable $12,340 Accounts payable Accounts receivable 4,110 610 Service revenue Supplies expense 7,670 1,090 Maintenance and repairs expense 690 Supplies 2,310 Advertising expense Utilities expense 400 210 Salaries and wages expense Equipment 26,170 1,570 Common stock 22,470 In June, the company issued no additional stock but paid dividends of $1,770.

Answer 1

Solution: Sunland company Income statement For the year month ended June 30,2017 Revenues Service Revenue 7670 Expenses Salaries and Wages Expense Supplies Expense Maintenance and Repair Expense Advertising Expense Utilities Expense Total Expenses Net Income/ (Loss) 1570 1090 690 400 210 3960 3710