Maynard Company (A) Diane Maynard made the following request of friend My bookkeeper has quand mode the hace sheets of my company He has behind a book ww the number systered in Wold you be will to prepare balance sheet for me Als, any com s you to be the numbers would be potected. The accounts, which is woodwodheto me that the income in Junew SIKS The book contained a detailed record of the tions, and from it the friend was able to copy of the balances at the beginning of the month and at the end of the month as shown in Exhibit 1. Diane Maynard owned all the stock of Maynard Company. At the end of June. Dune Maynard paid herself in $11.700 diva- dend und ned the money to repay her loan from the company Questions 1. Prepare balance sheets as of June 1 and as of hune 30, in proper format 2. Make comments about how the financial condition as of the end of June compared with that at the be ginning of June 3. Why do retained earnings not increase by the amount of Juneet income 4. As of June 30, do you fool that Maynard Company is with the amount in Shareholder Equity 5619467 Explain Protesor Robert N. Anthony EXHIBIT 1 Account balances June 1 $8.517 21. 1.974 156,000 5,104 8.385 SB5.000 390,000 Accounts payable Accounts receivable Accred wage puyabile Accumulated depreciation on building Accumulated depreciation on equipment Hanknotes payable Building Capital stod Cash Equipmental com Land Merchandisewwertory Noterece Diane Maynard Other current Other noncurrent Babies Prepaid insurance Retained eaming Suso hand Taxes payable June 30 $21,375 26,505 2,202 157,950 5,928 29.250 585,000 390,000 66.660 16,660 19.00 26.520 13,260 9,700 29,15 11,700 4,857 2.451 3,150 221.511 5.559 5.00 265 2,451 2.126 239.446 6,639 7,224