Financial Business

on june 1 hightower service Co. was started with an intial investment in the company of $ 22,100 cash. Here are the assets, liabilities, snd common stock of the company at June 30, and the revenues and expenses for the month of june, its first montth of operations:

Cash $4,600

Accounts Receivable $4,000

Service revenue $7,500

Supplies $2,400

Advertising expenses $400

Equipment $26,000

Common stock $22,100

Notes payable $12,000

Accounts payable $500

Supplies espense $1,000

Maintenance and repairs expense $600

Utilities expense $300

Salaries and wages expense $1,400

 

I june, the company issued no additional stock but paid dicidends of $1,400.

 

Instruccionc

a, Prepare an income statement and aretained earnings statement for the month of june and a balance sheet at june 30, 2014

b. Briefly discuss wheter the company;s first month of operations was a success

c. Discuss the comoany’d\s decision to distribute a dividend.