Question

Problem 1-3B (Part Level Submission) Shaw's Garden was started on May 1 with an investment of $45,350 cash. Following are the assets, li revenues and expenses for the month of May, its first month of operations. Accounts receivable $8,560 Notes payable $26,720 Service revenue 10,760 Salaries and wages expense 2,260 Advertising expense 1,800 Equipment 59,160 Accounts payable 4,560 Maintenance and repairs expense 2,130 Cash 11,160 Insurance expense 370 Common stock 45,350 No additional common stock was issued in May, but a dividend of $1,950 in cash was paid. (a1) Prepare an income statement for the month of May SHAW'S GARDEN Income Statement

Answer 1

INCOME STATEMENT
Service Revenue	10,760.00
less:advertising expense	-   1,800.00
Less:Salaries and wages expense	-   2,260.00
Less:maintenance and repairs	-   2,130.00
Less:insurance	-       370.00
Net income	4,200.00
Less:dividend paid	-   1,950.00
net income attributable to owners	2,250.00
BALANCESHEET
ASSETS
Accounts receivable	8,560.00
cash	11,160.00
equipment	59,160.00
TOTAL OF ASSETS	78,880.00
LIABILITIES
accounts payable	4,560.00
notes payable	26,720.00
common stock	45,350.00
Retained earnings	2,250.00
Total of owners fund and liabilties	78,880.00