Reference no: EM132587563

Question 1 - On June 1, 2017, Bramble Corp. was started with an initial investment in the company of $22,500 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:

Cash $4,850

Notes payable $12,500

Accounts receivable 4,250

Accounts payable 750

Service revenue 7,750

Supplies expense 1,090

Supplies 2,310

Maintenance and repairs expense 690

Advertising expense400

Utilities expense 210

Equipment 26,250

Salaries and wages expense 1,650

Common stock 22,500

In June, the company issued no additional stock but paid dividends of $1,800.

Required -

Make an income statement for the month of June.

Make a retained earnings statement for the month of June. (List items that increase retained earnings first.)

Make a balance sheet at June 30, 2017.

Question 2 - Splish Brothers Inc. began operations on January 1, 2017. The following information is available for Splish Brothers Inc. on December 31, 2017.

Accounts payable $6,700

Notes payable $10,400

Accounts receivable 3,700

Rent expense 11,700

Advertising expense 4,450

Retained earnings ?

Cash 4,800

Service revenue 28,400

Common stock 16,700

Supplies 3,600

Dividends 4,200

Supplies expense 1,250

Equipment 28,500

Required -

Make an income statement for Splish Brothers Inc.

Make a retained earnings statement for Splish Brothers Inc. (List items that increase retained earnings first.)

Make a balance sheet for Splish Brothers Inc.. (List assets in order of liquidity.)