On June 1 Eckersley Service Company was started with an investment of $26,200 cash. Here are the assets

P1-3A On June 1 Eckersley Service Company was started with an investment of $26,200 cash.  Here are the assets and liabilities of the company on June 30, and the revenues and expenses for the month of June, its first month of operations.

Cash                        $ 4,600                     Notes payable          $12,000

Accounts receivable     4,000                     Accounts payable            500

Revenue                     7,000                      Supplies expense         1,000

Supplies                     2,400                      Gas & oil expense           600

Advertising expense       400                       Utilities expense             300

Equipment                29,000                       Wage expense             1,400

In June, the company issued no additional common stock, but paid dividends of $2,000.

Requirements:

A.  Complete an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2010.

B.  Briefly discuss whether the company's first month of operation was a success

C.  Discuss the company's decision to distribute a dividend