Question: Special Delivery was started on May 1 with an investment of $45,000 cash. Following are the assets and liabilities of the company on May 31,

Special Delivery was started on May 1 with an investment of $45,000 cash. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May, its first month of operations.

$ 6,200 Notes payable Salaries and wages expense Equipment Maintenance and repairs

No additional common stock was issued in May, but a dividend of $1,700 in cash was paid.Instructions(a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2012.(b) Briefly discuss whether the company's first month of operations was a success.(c) Discuss the company's decision to distribute adividend.

$ 6,200 Notes payable Salaries and wages expense Equipment Maintenance and repairs expense Insurance expense Accounts receivable $28,000 2,000 Service revenue Advertising expense Accounts payable 10,400 800 56,000 2,900 400 2,400 Cash 15,800

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