| 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 and |
| expenses for the month of June, its first month of operations: |
| Name |
| Cash | $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 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 sheet |
| at June 30, 2017. |
| (b) | Briefly discuss in a Word document whether the company's first month of operations was a success. |
| (c ) | Discuss in a Word document 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 "?" . |
| Please do not use these columns as I will use them when I grade your assignment |
| (a) | ELITE SERVICE CO. | In addition, please do not use the red font as I use it when I am grading |
| Income Statement |
| For the Month Ended June 30, 2017 |
| Revenues |
| Service revenue | Value |
| Expenses |
| Salaries and wages expense | Value |
| Supplies expense | Value |
| Maintenance and repairs expense | Value |
| Advertising expense | Value |
| Utilities expense | Value |
| Total expenses | ? |
| Net income | ? |
| ELITE SERVICE CO. |
| Retained Earnings Statement |
| For the Month Ended June 30, 2017 |
| Retained earnings, June 1 | Value |
| Add: Net income | Value |
| ? |
| Less: Dividends | Value |
| Retained earnings, June 30 | ? |
| ELITE SERVICE CO. |
| Balance Sheet |
| June 30, 2017 |
| Assets |
| Cash | Value |
| Accounts receivable | Value |
| Supplies | Value |
| Equipment | Value |
| Total assets | ? |
| Liabilities and Stockholders' Equity |
| Liabilities |
| Accounts payable | Value |
| Notes payable | Value |
| Total liabilities | ? |
| Stockholders' equity |
| Common stock | Value |
| Retained earnings | Value | Value |
| Total liabilities and stockholders' equity | ? |
| (b) | Briefly address in a Word document whether the company's |
| first month of operations was a success. |
| (c) | Discuss in a Word document the company's decision to distribute |
| a dividend. |
skizzy
ExcelTemplate_Assignment_Individual_Elite_Services.xlsx
