Problem 1-3A (Part Level Submission) On June 1, 2017, Whispering Winds Corp. was

Question

Problem 1-3A (Part Level Submission) On June 1, 2017, Whispering Winds Corp. was started with an initial investment in the company of $22,320 cash. Here are the assets, lablities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operatons: 5 5,600 Notes payable 4,140 8,500 Supples expense $14,000 Accounts receivable Service revenue Accounts payable 1,020 2,380 dventhing expense 400 Maintenance and repairs expense Utlties expense 27,000 Salaries and wages expense Common stack In June, the company issued no additional stock but paid dvidends of $1,620. Prepare a balance sheet at June 30, 2017. (List assets in order of iuidity.) Whispering Winds Corp. Ralanoe Shect Liabilities and Stockholders'Equity

Explanation / Answer

income statement Service revenue 8,500 less:Expenses Advertising expense 400 supplies expense 1,020 Maintenance and repair expense 620 Utilities expense 280 Salaries and wages expense 2,400 total expense 4,720 Net income for the year 3,780 Retained earnings opening, retained earnings 0 net income for the year 3,780 3780 less:dividends paid 1,620 Closing,retained earnings 2,160 Balance Sheet As on June 30,2017                                   Assets                                              Cash 5,600 Account receivable 4,140 Supplies 2,380 Equipment 27,000 total Assets 39,120                 Liabilities and Stockholder's Equity Liabilities Accounts payable 640 Notes payable 14,000 total liabilities 14,640 Stockholder's Equity Common stock 22,320 Retained earnings 2,160 total stockholders equity 24,480 total liabilities & Stockholder's Equity 39,120

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