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WileyPLUS | edugen.wileyplus.com/edugen/student/mainfr.uni WileyPLUS: MyWileyPLUS| Help Contact Us| Log Out WileyPLUS Kimmel, Financial Accounting, 7e Principles of Financial Accounting (ACC 153) Home Read, Study & Practice Assignment GradebookORION Assignment> Open Assignment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Problem 1-3A On June 1, Hightower 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, and the revenues and expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock 4,600 4,000 7,500 2,400 400 26,000 22,100 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense $12,000 500 1,000 600 300 1,400 In June, the company issued no additional stock but paid dividends of $1,400 Prepare an income statement for the month of June HIGHTOWER SERVICE CO. Income Statement For the Month Ended June 30, 2014 0 1:03 AM 3/2/2016 Search the web and Windows

Explanation / Answer

Income Statement Particulars Amount $ Amount $ Service Revenue          7,500 Closing stock of Supplies          2,400          9,900 Less: Operating and administrative expenses Advertising expenses             400 Supplies expense          1,000 Maintenance and repairs expense             600 Utilities expense             300 Salaries and wages expense          1,400          3,700 Net Income          6,200 Statement of retained earnings Particulars Amount $ Amount $ Opening balance of retained earnings                 -   Net income for the month of june          6,200 Dividends paid to shareholders       (1,400)          4,800 Retained earnings closing balance as on June 30          4,800

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