Neveranerror Inc. was organized on June 2 by a group of accountants to provide accounting and tax services to small businesses. The following transactions occurred during the first month of business:

June 2:

Received contributions of $10,000 from each of the three owners of the business in exchange for shares of stock.

June 5:

Purchased a computer system for $12,000. The agreement with the vendor requires a down payment of $2,500 with the balance due in 60 days.

June 8:

Signed a two-year promissory note at the bank and received cash of $20,000.

June 15:

Billed $12,350 to clients for the first half of June. Clients are billed twice a month for services performed during the month, and the bills are payable within ten days.

June 17:

Paid a $900 bill from the local newspaper for advertising for the month of June.

June 23:

Received the amounts billed to clients for services performed during the first half of the month.

June 28:

Received and paid gas, electric, and water bills. The total amount is $2,700.

June 29:

Received the landlords bill for $2,200 for rent on the office space that Neveranerror leases. The bill is payable by the 10th of the following month.

June 30:

Paid salaries and wages for June. The total amount is $5,670.

June 30:

Billed $18,400 to clients for the second half of June.

June 30:

Declared and paid dividends in the amount of $6,000.

2a. Prepare the income statement for the month of June.

Neveranerror Inc.
Income Statement
For the Month Ended June 30
Cash		$fill in the blank 4fffdcfdcfeefcc_2
Expenses:
	$fill in the blank 4fffdcfdcfeefcc_4
	fill in the blank 4fffdcfdcfeefcc_6
	fill in the blank 4fffdcfdcfeefcc_8
	fill in the blank 4fffdcfdcfeefcc_10	fill in the blank 4fffdcfdcfeefcc_11
		$fill in the blank 4fffdcfdcfeefcc_13

2b. Prepare the statement of retained earnings for the month of June. If an amount is zero, enter "0".

Neveranerror Inc.
Statement of Retained Earnings
For the Month Ended June 30
	$fill in the blank 337192f44020018_2
	fill in the blank 337192f44020018_4
	fill in the blank 337192f44020018_6
	$fill in the blank 337192f44020018_8

2c. Prepare the classified balance sheet at June 30.

Neveranerror Inc.
Balance Sheet
June 30
Assets
Current assets:
	$fill in the blank 47963ff92007f84_2
	fill in the blank 47963ff92007f84_4
Total current assets		$fill in the blank 47963ff92007f84_5
Property, plant, and equipment:
		fill in the blank 47963ff92007f84_7
Total assets		$fill in the blank 47963ff92007f84_8
Liabilities and Stockholders' Equity
Current liabilities:
	$fill in the blank 47963ff92007f84_10
	fill in the blank 47963ff92007f84_12	$fill in the blank 47963ff92007f84_13
Long-term debt:
		fill in the blank 47963ff92007f84_15
Total liabilities		$fill in the blank 47963ff92007f84_16
	$fill in the blank 47963ff92007f84_18
	fill in the blank 47963ff92007f84_20
Total stockholders' equity		fill in the blank 47963ff92007f84_21
Total liabilities and stockholders' equity		$fill in the blank 47963ff92007f84_22

3. From your reading of the financial statements for the first month, would you consider working at the company? Why?

, The company able to generate revenues and control costs. The profit margin was and current ratio was .