Question

Preparing an Income Statement, Retained Earnings Statement, andBalance Sheet Scenario: On June 1, 2017, Elite Service Co. wasstarted with an initial investment in the company of $22,100 cash.Below are the assets, liabilities, and common stock of the companyJune 30, 2017, and the revenues and expenses for the month of June,its first month of operations: Cash $ 4,600 Notes payable $12,000Accounts receivable 4,000 Accounts payable 500 Service revenue7,500 Supplies expense 1,000 Supplies 2,400 Maintenance and repairsexpense 600 Advertising expense 400 Utilities expense 300 Equipment26,000 Salaries and wages expense 1,400 Common stock 22,100 InJune, the company issues no additional stock but paid dividends of$1,400. Prepare an income statement, retained earnings statement,and balance sheet analyzing your findings using the questionsbelow, in a total of 1,050 words: Briefly address whether thecompany's first month of operations was a success. Discuss thecompany's decision to distribute a dividend. Use the Excel®spreadsheet to show your work and submit it with your analysis.Preparing an Income Statement, Retained Earnings Statement, andBalance Sheet