Question

On June 1, 2022, Wildhorse Co. was started with an initial investment in the company of $19,600 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 $ 4,890 Notes payable $12,580 Accounts receivable 4,360 Accounts payable 860 Service revenue 8,000 Supplies expense 1,090 Supplies 2,338 Maintenance and repairs expense 640 Advertising expense 400 Utilities expense 260 Equipment 24,000 Salaries and wages expense 1,690 Common stock 19,600 During June, the company issued no additional stock but paid dividends of $1,372.

Answer 1

WILDHORSE CO.
Income Statement
For the Month Ended June 30, 2022
Revenues
Service revenue		$   8,000
Less: Expenses
Advertising expenses	$      400
Supplies expense	$   1,090
Maintenance and repairs expense	$      640
Utilities expense	$      260
Salaries and wages expense	$   1,690
Total expenses		$   4,080
Net income		$   3,920

WILDHORSE CO.
Retained Earnings Statement
For the Month ended June 30, 2022
Retained earnings, Beginning	$             -
Add: Net income	$    3,920
	$    3,920
Less: Dividends	$ (1,372)
Retained earnings, Ending	$    2,548

WILDHORSE CO.
Balance Sheet
As at June 30, 2022
Assets
Cash		$     4,890
Accounts receivable		$     4,360
Supplies		$     2,338
Equipment		$   24,000
Total Assets		$   35,588
Liabilities and stockholders equity
Current Liabilities
Accounts payable	$         860
Note payable	$   12,580
Total current liabilities		$   13,440
Stockholders Equity
Common stock	$   19,600
Retained earnings	$     2,548
Total Shareholders' equity		$   22,148
Total liabilities and shareholders' equity		$   35,588

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