10. Mariah, Inc. just opened for business and needs you, as her accountant, to p

Question

10. Mariah, Inc. just opened for business and needs you, as her accountant, to prepare: 1) an income statement and 2) a statement of retained earnings for the month of June. You also need to prepare: 3) a balance sheet as of June 30, 2018. The financial events of Mariah, Inc. for the month of June, are: • On June 1, Mariah, Inc. issued common stock in exchange for $10,000 cash. • On June 3, the company borrowed $5,000 from Spencer & Co., and signed a note payable with the principal and interest to be due in one year. • On June 7, the company purchased $15,000 of equipment with cash. • On June 8, Mariah, Inc. provided services to a client for $5,000 in cash. • On June 12, the company incurred a repair expense of $1,800 and promised to pay the repair contractor, ShyAnn, LLC, the following month. • On June 18, the company provided service to a new client, Derek Co., in the amount of $5,000 on account. Derek Co. promises to pay the following month. • On June 29, the company paid the month’s utility bill of $325. • At the end of June, Mariah, Inc. distributed cash dividends to stockholders of $900.

please show all work. thank you so much i know this is alot.

Explanation / Answer

Mariah, Inc

Income statement

for the year ended 30 June 2018

Mariah, Inc

Statement of Retained earning

for the year ended 30 June 2018

Mariah, Inc

Balance sheet

as on 30 June 2018

**cash : 10000 common stock +5000 borrowing- 15000equipment +5000cash revenue -325 utilities -900cash dividend= 3775

Mariah, Inc

Income statement

for the year ended 30 June 2018

Service Revenue [5000cash +5000credit ] 10000 LesS:operating expense Utilities expense (325) Repair expense (1800) Net Income 7875

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