Question

10. Mariah, Inc. just opened for business and needs you, as her accountant, to prepare: 1) an income statement and 2) a statement of retained earnings for the month of June. You also need to prepare: 3) a balance sheet as of June 30, 2018. The financial events of Mariah, Inc. for the month of June, are: • On June 1, Mariah, Inc. issued common stock in exchange for $10,000 cash. • On June 3, the company borrowed $5,000 from Spencer & Co., and signed a note payable with the principal and interest to be due in one year. • On June 7, the company purchased $15,000 of equipment with cash. • On June 8, Mariah, Inc. provided services to a client for $5,000 in cash. • On June 12, the company incurred a repair expense of $1,800 and promised to pay the repair contractor, ShyAnn, LLC, the following month. • On June 18, the company provided service to a new client, Derek Co., in the amount of $5,000 on account. Derek Co. promises to pay the following month. • On June 29, the company paid the month’s utility bill of $325. • At the end of June, Mariah, Inc. distributed cash dividends to stockholders of $900.

please show all work. thank you so much i know this is alot.

Answer 1

Mariah, Inc Income statement for the year ended 30 June 2018
Service Revenue [5000cash +5000credit ]	10000
LesS:operating expense
Utilities expense	(325)
Repair expense	(1800)
Net Income	7875

Mariah, Inc Statement of Retained earning for the year ended 30 June 2018
Beginning balance	0
Net income	7875
Dividend	(900)
Retained earning at 30 june 2018	6975

Mariah, Inc Balance sheet as on 30 June 2018
Asset
Current asset
cash	3775
Accounts receivable   [services on credit]	5000
Total current asset		8775
Non current asset
equipment		15000
Total asset		23775
Liabilities and stockholders equity
current liability
Accounts payable	1800
NOte payable (one year)	5000
Total liabilities		6800
stockholders equity
common stock	10000
Retained earning	6975
Total stockholders equity		16975
Total liabilities and stockholders equity		23775

**cash : 10000 common stock +5000 borrowing- 15000equipment +5000cash revenue -325 utilities -900cash dividend= 3775