| 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: |
| | 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 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 "?" . |
| (a) | ELITE SERVICE CO. |
| | 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 | | ? |
ROBOTNIK
wrksht1.xlsx
