Transaction Analysis and Financial Statements 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 landlord's 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. Required: 1. Complete the below table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "O". Use the minus sign to indicate decreases. Neveranerror Inc. Transactions for the Month of June Assets Liabilities Stockholders' Equity Capital Stock Retained Earnings Date Cash Accounts Receivable Computer Rent Payable Accounts Payable Notes Payable June 2 $ $ $ June 5 Bal. $ $ June 8 Bal. $ $ $ $ $ $ June 15 Bal. $ $ $ $ $ $ $ June 17 Bal. $ $ $ $ June 23 Bal. $ $ $ $ June 28 Bal. $ $ $ $ June 29 Bal. $ $ $ $ June 30-Wages Bal. $ $ $ $ June 30-Billed clients Bal. $ $ $ $ $ $ $ $ June 30-Dividends Bal. $ $ $1 $ $ $ Total Assets $ Total Liabilities and Stockholders' Equity $ 2a. Prepare the income statement for the month of June. Neveranerror Inc. Income Statement For the Month Ended June 30 $ Expenses: 2b. Prepare the statement of retained earnings for the month of June. If an amount is zero, enter "O". Neveranerror Inc. Statement of Retained Earnings For the Month Ended June 30 2c. Prepare the classified balance sheet at June 30. Neveranerror Inc. Balance Sheet June 30 Assets Current assets: Total current assets Property, plant, and equipment: Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 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 Transaction Analysis and Financial Statements 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 landlord's 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. Required: 1. Complete the below table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "O". Use the minus sign to indicate decreases. Neveranerror Inc. Transactions for the Month of June Assets Liabilities Stockholders' Equity Capital Stock Retained Earnings Date Cash Accounts Receivable Computer Rent Payable Accounts Payable Notes Payable June 2 $ $ $ June 5 Bal. $ $ June 8 Bal. $ $ $ $ $ $ June 15 Bal. $ $ $ $ $ $ $ June 17 Bal. $ $ $ $ June 23 Bal. $ $ $ $ June 28 Bal. $ $ $ $ June 29 Bal. $ $ $ $ June 30-Wages Bal. $ $ $ $ June 30-Billed clients Bal. $ $ $ $ $ $ $ $ June 30-Dividends Bal. $ $ $1 $ $ $ Total Assets $ Total Liabilities and Stockholders' Equity $ 2a. Prepare the income statement for the month of June. Neveranerror Inc. Income Statement For the Month Ended June 30 $ Expenses: 2b. Prepare the statement of retained earnings for the month of June. If an amount is zero, enter "O". Neveranerror Inc. Statement of Retained Earnings For the Month Ended June 30 2c. Prepare the classified balance sheet at June 30. Neveranerror Inc. Balance Sheet June 30 Assets Current assets: Total current assets Property, plant, and equipment: Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 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