Ask Question
1 November, 07:10

On June 1, 2022, Crane Company was started with an initial investment in the company of $26,000 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations:

Cash $ 4,850

Notes payable $12,500

Accounts receivable 4,250

Accounts payable 750

Service revenue 7,800

Supplies expense 1,100

Supplies 2,329

Maintenance and repairs expense 690

Advertising expense 400

Utilities expense 210

Equipment 30,200

Salaries and wages expense 1,500

Common stock 26,000

During June, the company issued no additional stock but paid dividends of $1,521.

Prepare a retained earnings statement for the month of June.

+3
Answers (1)
  1. 1 November, 11:09
    0
    Answer and Explanation:

    For preparing the retained earning statement first we have to determine the net income or net loss which is shown below:

    = Service revenue - supplies expense - Maintenance and repairs expense - advertising expense - utilities expense - salaries and wages expense

    = $7,800 - $1,100 - $690 - $400 - $210 - $1,500

    = $3,900

    Now the preparation of the retained earning statement is presented below:

    Crane Company

    Retained Earnings Statement

    For the month of June

    Beginning balance $ -

    Add: Net income $3,900

    Less: Dividends ($1,521)

    Ending balance $2,379
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On June 1, 2022, Crane Company was started with an initial investment in the company of $26,000 cash. Here are the assets, liabilities, and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers