Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 1, 2022, Crane Company was started with an initial investment in the company of $21,725 cash. Here are the assets, liabilities, and common

On June 1, 2022, Crane Company was started with an initial investment in the company of $21,725 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

$ 4,960

Notes payable

$12,720

Accounts receivable

4,400

Accounts payable

900

Service revenue

7,900

Supplies expense

1,155

Supplies

2,292

Maintenance and repairs expense

690

Advertising expense

400

Utilities expense

210

Equipment

26,300

Salaries and wages expense

1,100

Common stock

21,725

During June, the company issued no additional stock but paid dividends of $1,738.

Prepare an income statement for the month of June.

Prepare a retained earnings statement for the month of June. (List items that increase retained earnings first.)

Prepare a balance sheet at June 30, 2022. (List assets in order of liquidity.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago

Question

6. What information processes operate in communication situations?

Answered: 1 week ago