Accounts receivable 4,000 Accounts payable
Service revenue 7,500 Supplies expense
500
1,000
Supplies
expense
600
2,400
Maintenance and repairs
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, 2014.
(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 "?" .
Exercise 2-1
Classify each of the following financial statement items taken from
Mordica Corporation’s balance sheet.