Week 2 Ia

|PROBLEM 1-3A |

(a) BEARDSLEY SERVICE CO.

Income Statement

For the Month Ended June 30, 2012

Revenues

Service revenue $7,500

Expenses

Salaries and wages expense $1,400

Supplies expense $1,000

Maintenance and repairs expense    $600

Advertising expense    $400

Utilities expense    $300

Total expenses  3,700

Net income $3,800

BEARDSLEY SERVICE CO.

Retained Earnings Statement

For the Month Ended June 30, 2012

Retained earnings, June 1 $    0

Add: Net income  $3,800

 3,800

Less: Dividends  $1,400

Retained earnings, June 30 $2,400

PROBLEM 1-3A (Continued)

BEARDSLEY SERVICE CO.

Balance Sheet

June 30, 2012

Assets

Cash $ xxx

Accounts receivable   xxx

Supplies   xxx

Equipment  xxx

Total assets $37,000

Liabilities and Stockholders’ Equity

Liabilities

Notes payable $xxx

Accounts payable     xxx

Total liabilities $12,500

Stockholders’ equity

Common stock  xxx

Retained earnings   xxx  24,500

Total liabilities and stockholders’ equity $37,000

(b)

(c)

|PROBLEM 3-5A |

(a)

|Date | |Account Titles and Explanation | |Debit | |Credit |

|Apr. 1 | |Cash | |xxx | | |

| | |Common Stock | | | |xxx |

| | |  (Issued shares of stock for cash) | | | | |

| | |...