Transactions Reconstructed from Financial Statements The following fi nancial statements are available for Elm Corporation for its fi rst month of operations:

Elm Corporation Income Statement For the Month Ended June 30, 2010 Service revenue $93,600 Expenses:

Rent $ 9,000 Salaries and wages 27,900 Utilities 13,800 50,700 Net income $42,900 Elm Corporation Balance Sheet June 30, 2010 Assets Liabilities and Stockholders’ Equity Cash $ 22,800 Accounts payable $ 18,000 Accounts receivable 21,600 Notes payable 90,000 Equipment 18,000 Capital stock 30,000 Building 90,000 Retained earnings 38,400 Land 24,000 Total liabilities and Total assets $176,400 stockholders’ equity $176,400 Required Using the format illustrated in Exhibit 3-1, prepare a table to summarize the transactions entered into by Elm Corporation during its fi rst month of business. State any assumptions you believe are necessary in reconstructing the transactions.

AppendixLO1