Greenway Corporation is organized on June 1, 1998. The company will provide lawn care and tree-trimming services on a contract basis. Following is an alphabetical list of the items that should appear on its income statement for the first month and on its bal- ance sheet at the end of the first month (you will need to determine on which statement each should appear).

Required 1. Prepare an income statement for the month of June.

2. Prepare a balance sheet at June 30, 1998. Note: You will need to determine the bal- ance in Retained Earnings at the end of the month.

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Accounts payable Accounts receivable $ 800 500 Building 2,000 Capital stock 5,000 Cash 3,300 Gas, utilities, and other expenses 300 Land 4,000 Lawn care revenue 1,500 Notes payable 6,000 Retained earnings (beginning balance) -0- Salaries and wages expense Tools Tree-trimming revenue Truck 900 800 500 2,000