Question

Question3 On June 1,2017, Metlock, Inc. was started with an initial investment in the company of $22,410 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 5,060 Notes payable 4,250 7,960 Supplies expense 2,300 12.920 750 1,100 700 200 1,860 Accounts payable 400 26,460 22,410 Maintenance and repairs expense Utilities expense Salaries and wages expense In June, the company issued no additional stock but paid dividends of $ 1,710 Prepare an income statement for the month of June. Metlock, Inc

Answer 1

Income Statement:
Revenue:
Service revenue				7960
Less: Operating expenses
Advertising expenses			400
Supplies expenses			1100
Maintenance and repairs expense			700
Utilities expenses			200
Salaaries and Wages expenses			1860
Total operating expenses				4260
Net Income				3700
Retained earnings Statement:
Beginning balance of RE				0
Add: Net Income of the month				3700
				3700
less: Dividend paid				1710
Ending balance of RE				1990
Balance Sheet:
Assets:
Cash				5060
Accounts receivable				4250
Supplies				2300
Equipment				26460
Total Assets				38070
Liabilities and Stockholder's equity:
Liabilities:
Accounts payable			750
Notes Payable			12920
Total liabilities				13670
Stockholder's equity:
Common Stock			22410
Retained earnings			1990
Total Stockholder's equity				24400
Total Liabilities and Stockholder's equity				38070