P1-3A Prepare an income statement, retained earnings statement and balance sheet; discuss results
On June 1, 2017, 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, 2017, 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	500
	Service revenue	7,500		Supplies expense	1,000
	Supplies	2,400		Maintenance and repairs expense	600
	Advertising expense	400		Utilities expense	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 retained earnings statement for the month of June and a balance sheet
	at June 30, 2017.
(b)	Briefly discuss whether the company's first month of operations was a success.
(c )	Discuss the company's decision to distribute a dividend.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

ELITE SERVICE CO. Income Statement For the Month Ended June 30, 2017 Service revenue Valuc Expenses Salaries and wages expense Supplies expense Maintenance and repairs expense Adverising expense Utilities expense Value Value Valuc Valuc Valuc Net income ELITE SERVICE CO Retained Eamings Statement For the Month Ended June 30, 2017 Value Retained carnings, June 1 Add: Net income Valuc Less: Dividends Retained carnings, June 30 ELITE SERVICE CO. Balance Shect June 30, 2017 Asscts Cash Accounts receivable Supplies Equipment Total assets Value Valuc Valuc Valuc Liabilities and Stockholders E Notes payable Accounts payable Value Valuc Total liabilities Stockholders Valuc Valuc Common stock Retained carnings Valuc Total liabilities and stockholders' After you have completed Pl-3A consider the following additional question. . Assume that service revenue and salaries and wages changed to $9,000 and $1,800 respectively The additional revenue earned were all on account. Revise the financial statements to reflect these changes