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Scenario: On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Below are the assets, liabilities, and common stock of the company June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:
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 issues no additional stock but paid dividends of $1,400.
Prepare an income statement, retained earnings statement, and balance sheet using the Excel Template that is attached. Then address the following in a Word document which :
Briefly address whether the company’s first month of operations was a success.
Discuss the company’s decision to distribute a dividend.
Submit the Excel® spreadsheet with the Financial Statements and submit the Word document with your analysis in order to earn the possible points.
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