Module 1, Chapter 1 Handoute Introduction to Financial Statementse E1.4 The Bonita Vista Golf & Country Club details the following accounts in its financial statements - Accounts payable Inventory Accounts receivable Mortgage payable Equipment Supplies expense- Sales revenue Rent expense- Service revenue Salaries and wages expense- Instructions: Classify each of the accounts as an asset (A), liability (L), stockholders' equity (SE). revenue (R), or expense (E) iteme P1.3 On June 1, 2022, Elite Service Co was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations- Cash- $4,600 Notes payable $12,000 Accounts receivable 4,000 Accounts payable ! 5004 Service revenue 7,500 Supplies expenses 1,000 Supplies 2,400 Maintenance and repairs expenses 6006 Advertising expenses 400 Utilities expenses 300- Equipment- 26,000 Salaries and wages expense- 1,400 Common stock 22,100 - In June, the company issued no additional stock but paid dividends of $1,400.- Instructions a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2022. Income Statement for the month ending June 30, 2022- Revenues 3 Expenses ttttm tttt Ti 1. T. TT.TTTT Total Expenses Net Income Statement of Retained Earnings for the month ending June 30, 2022 Retained Earnings June 12 Add 1. 1 1 Less Retained Earnings, June 30. - b) Briefly discuss whether the company's first month of operations was a success. c) Discuss the company's decision to distribute a dividend. t t I Page 4 of 5 Module 1, Chapter 1 Handoute Introduction to Financial Statements P1-1 Presented below are five independent situations. In each case, explain what form of organization the business is likely to take-sole proprietorship, partnership, or corporation. Give reasons for your choice. a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions. Each has contributed an equal amount of cash and knowledge to the venture. Although their approach looks promising, they are concerned about the legal liabilities that their business might confront- ttt b) Bob Colt, a college student looking for summer employment, opened a bait shop in a small shed at a local marina- ttt c) Alma Ortiz and Jaime Falco each owned separate shoe manufacturing businesses. They have decided to combine their businesses. They expect that within the coming year they will need significant funds to expand their operations- ttt d) Alice, Donna, and Sam recently graduated with marketing degrees. They have been friends since childhood. They have decided to start a consulting business focused on marketing sporting goods over the Internet e) Don Rolls has developed a low-cost GPS device that can be implanted into pets so that they can be easily located when lost. He would like to build a small manufacturing facility to make the devices and then sell them to veterinarians across the country. Don has no savings or personal assets. He wants to maintain control over the business