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 , 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 .
Accounts payable Accounts receivable