Transactions Reconstructed from Financial Statements The following financial statements are available for Elm Corporation for its first month of operations: Elm Corporation Income Statement For the Month of June $93,600 Service revenue Expenses: Rent $ 9,000 Salaries and wages 27,900 Utilities 13,800 50,700 Net Income $42,900 Elm Corporation Balance Sheet June 30 Assets Liabilities and Stockholders' Equity Cash $ 18,000 Accounts receivable 90,000 Equipment $ 22,800 Accounts payable 21,600 Notes payable 18,000 Capital stock 90,000 Retained earnings 24,000 Building 30,000 38,400 Land Total liabilities and Total assets $176,400 stockholders' equity $176,400 Check My Work Cash $ 18,000 90,000 Accounts receivable Equipment 30,000 $ 22,800 Accounts payable 21,600 Notes payable 18,000 Capital stock 90,000 Retained earnings 24,000 Total liabilities and Building 38,400 Land Total assets $176,400 stockholders' equity $176,400 Additional information: 1. The land was acquired for cash. 2. All sales were on account. 3. Cash dividends were paid.