ACC/300 Problem Set 1

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Problem Set 1ACC/300(Chapter 1-P1-3A)On June 1, Beardsley Service Co. was established by using the primary investment in thecorporation amounting to $22,100 cash. The assets and liabilities of the company last June30 is listed and the revenues and expenses for the month of June, the first month of theirenterprise.Cash$ 4,600Notes payable$12,000Accounts receivable4,000Accounts payable500Service revenue7,500Supplies expense1,000Supplies2,400Maintenance and repairs expense600Advertising expense400Utilities expense300Equipment26,000Salaries and wages expense1,400The corporation did not order any more stocks yet still paid dividends amounting$1,400.Create a retained earnings statement, income statement and a balance sheet; explain theresults.(SO 4, 5),APInstructionsa.For the month of June, create a retained earnings statement and an incomestatement; also prepare a balance sheet at June 30, 2012.b.Precisely deliberate if the corporation’s first month on the industry is a triumph.c.Explain the corporation’s choice to allocate a dividend.

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Marginal check figures(in blue) provide a key number to let you know you are on theright track.(a)Net income$3,800Ret. earnings$2,400Tot. assets$37,000A)Income Statement for the month of June 30th, 2012ParticularsDetails $Amount $Service Revenue (A)7,500Less ExpensesSupplies Expense1,000Repairs and Maintenance Expense600Advertising Expense400Utilities Expense300Salaries and wages Expense1,400Total Expenses (B)(3,700)Net Income (A-B)3,800Statement of Retained Earnings for the month of JuneParticularsDetails $Net Income3,800Less Dividend(1,400)Retained Earnings2,400Balance sheet for the month of JuneLiabilitiesAmount $AssetsAmount $Capital(22100+2400)(+) retained Earnings24,500Cash4,600Notes Payable12,000Accounts receivable4,000Accounts payable500Supplies2,400Equipment26,000Total37,000Total37,000

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