Problem 1-3B - Common Stock $45,000.00 15 Retained Earnings...

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30 Name Jacqueline Reyes Section MW 2-3:40PM Date 8/31/2011 (a) SPECIAL DELIVERY Income Statement For the Month Ended May 31, 2012 1 Revenues 2 Service Revenue 3 4 Expenses 5 Salaries and Wages Expenses  $2,000.00  6 Advertising Expense  $800.00  7 Insurance Expense  $400.00  8 Maintenance and Repairs Expenses  $2,900.00  9 Total Expenses 10 11 12 Net income 13 SPECIAL DELIVERY Retained Earnings Statement For the Month Ended May 31, 2012 1 Retained Earnings, May 1 2 Add: Net Income 3 4 Less: Dividends 5 Retained Earnings, May 31 6
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30 Problem 1-3B Special Delivery 1  $10,400.00  2 3 4 5 6 7 8  $6,100.00  9 10 11  $4,300.00  12 13  $-    1  $4,300.00  2  $4,300.00  3  $1,700.00  4  $2,600.00  5 6
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31 Name Jacqueline Reyes Section MW 2-3:40P Date 8/31/2011 (a) (Continued) SPECIAL DELIVERY Balance Sheet May 31, 2012 1 Assets 2 Cash 3 Equipment 4 Accounts Receivable 5 Total Assets 6 7 8 Liabilities and Stockholders' Equity 9 Liabilities 10 Notes Payable  $28,000.00  11 Accounts Payable  $2,400.00  12 Total Liabilities 13 Stockholder's Equity 14
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Unformatted text preview: Common Stock $45,000.00 15 Retained Earnings $2,600.00 16 Total Stockholder's Equity 17 Total Liabilities and Stockholder's Equity 18 19 20 (b) & (c) 1 (b) The first month of operations for the company was a success because they ending the 2 with a net income of $ 4,300. Their revenue was able to exceed their total amount of e 3 This is a plus especially for a company's first month of business. 4 5 6 (b) The company should first focus on paying its debts and then the dividends. Next time 7 company should consider reinvesting in the company instead of paying off the dividen 8 9 10 11 12 13 14 15 31 31 Problem 1-3B Concluded Special Delivery 1 $15,800.00 2 $56,000.00 3 $6,200.00 4 $78,000.00 5 6 7 8 9 10 11 $30,400.00 12 13 14 15 $47,600.00 16 $78,000.00 17 18 19 20 e month 1 expenses. 2 3 4 5 the 1 ds. 2 3 9 10 11 12 13 14 15 31...
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This note was uploaded on 09/11/2011 for the course SCI-ACCOUN AC201 taught by Professor Walterboswell during the Fall '11 term at Montgomery CC.

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Problem 1-3B - Common Stock $45,000.00 15 Retained Earnings...

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