Reference no: EM13507362
On june 1 hightower service Co. was started with an intial investment in the company of $ 22,100 cash. Here are the assets, liabilities, snd common stock of the company at June 30, and the revenues and expenses for the month of june, its first montth of operations:
Cash $4,600
Accounts Receivable $4,000
Service revenue $7,500
Supplies $2,400
Advertising expenses $400
Equipment $26,000
Common stock $22,100
Notes payable $12,000
Accounts payable $500
Supplies espense $1,000
Maintenance and repairs expense $600
Utilities expense $300
Salaries and wages expense $1,400
I june, the company issued no additional stock but paid dicidends of $1,400.
Instruccionc
a, Prepare an income statement and aretained earnings statement for the month of june and a balance sheet at june 30, 2014
b. Briefly discuss wheter the companys first month of operations was a success
c. Discuss the comoanys decision to distribute a dividend.