HCS 380 RANK Let's Do This /hcs380rank.com HCS 380 RANK Let's Do This /hcs380rank.com | Page 5

Supplies
2,400
Maintenance and repairs expense
600
Advertising expense 400
Equipment
26,000
Utilities expense
300
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