Problem:
On June 1, 20D, Global Services, Inc., was started with $30,000 invested by the owners as contributed capital. On June 30, 20D, the accounting records contained the following mounts:
- Accounts Payable $ 1,200
- Accounts Receivable 4,200
- Accumulated Depreciation 500
- Cash 8,000
- Consulting Fees Revenue 14,200
- Contributed Capital 30,000
- Depreciation Expense 500
- Dividends Declared 2,300
- Office Equipment 20,000
- Office Supplies 750
- Office Supplies Expense 400
- Rent Expense 2,600
- Salary Expense 6,800
- Telephone Expense 350
- The dividends have already been paid during the month of June, 20D.
- Remember the headings.
Required:
Question 1: Prepare an income statement for June 20D, the first month of Global Services operation. Ignore income taxes.
Question 2: Prepare a statement of stockholders' equity for June 20D, the first month of Global Services' operation. Ignore income taxes. Consider both Contributed Capital (another name for Common Stock) and Retained Earnings.
Question 3: Prepare a classified balance sheet (current assets, non-current assets, current liabilities, long-term debt and equity) for June 20D, Global Services first month of operations.