Preparing an Income Statement, Retained Earnings Statement, and Balance Sheet

Scenario: On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Below are the assets, liabilities, and common stock of the company June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:

Cash

Don't use plagiarized sources. Get Your Custom Essay on
Preparing an Income Statement, Retained Earnings Statement, and Balance Sheet
Just from $13/Page
Order Essay

$ 4,600

Notes payable

$12,000

Accounts receivable

4,000

Accounts payable

500

Service revenue

7,500

Supplies expense

1,000

Supplies

2,400

Maintenance and repairs expense

600

Advertising expense

400

Utilities expense

300

Equipment

26,000

Salaries and wages expense

1,400

Common stock

22,100

In June, the company issues no additional stock but paid dividends of $1,400. Prepare an income statement, retained earnings statement, and balance sheet analyzing your findings using the questions below, in a total of 1,050 words:
Briefly address whether the company’s first month of operations was a success.
Discuss the company’s decision to distribute a dividend.
Use the Excel® spreadsheet to show your work and submit it with your analysis.
acc290r7_week_1__assignment_individual_elite_services__1_.xls.xlsx

Unformatted Attachment Preview

P1-3A Prepare an income statement, retained earnings statement and balance sheet; discuss results
On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash.
Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues an
expenses for the month of June, its first month of operations:
Cash
Accounts receivable
Service revenue
Supplies
Advertising expense
Equipment
Common Stock
$4,600
4,000
7,500
2,400
400
26,000
22,100
In June, the company issued no additional stock but paid dividends of $1,400.
Instructions
(a)
Prepare an income statement and retained earnings statement for the month of June and a balance
at June 30, 2017.
(b)
Briefly discuss whether the company’s first month of operations was a success.
(c ) Discuss the company’s decision to distribute a dividend.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with
(a)
ELITE SERVICE CO.
Income Statement
For the Month Ended June 30, 2017
Revenues
Service revenue
Expenses
Salaries and wages expense
Supplies expense
Maintenance and repairs expense
Advertising expense
Utilities expense
Total expenses
Net income
Value
Value
Value
Value
Value
Value
ELITE SERVICE CO.
Retained Earnings Statement
For the Month Ended June 30, 2017
Retained earnings, June 1
?
?
Value
Add: Net income
Value
?
Value
?
Less: Dividends
Retained earnings, June 30
ELITE SERVICE CO.
Balance Sheet
June 30, 2017
Assets
Cash
Accounts receivable
Supplies
Equipment
Total assets
Value
Value
Value
Value
?
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable
Notes payable
Total liabilities
Stockholders’ equity
Common stock
Retained earnings
Total liabilities and stockholders’ equity
Value
Value
?
Value
Value
Value
?
ent and balance sheet; discuss results
vestment in the company of $22,100 cash.
ny at June 30, 2017, and the revenues and
Notes payable
Accounts payable
Supplies expense
Maintenance and repairs expense
Utilities expense
Salaries and wages expense
nds of $1,400.
ement for the month of June and a balance sheet
ations was a success.
ther a number or a formula in cells with a “?” .
$12,000
500
1,000
600
300
1,400

Purchase answer to see full
attachment

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 15% with the discount code ESSAYHELP