4Merge & Cente I Copy A BIU Paste 3 Format X f Amount V U M31 T R P JI K G H F B Date: Name: Course: BUA 201 Instructor: Ingalls Financial Accounting Chapter 1 Homework 4 6 PI-34, Prepare an inceme statement, retained earnings statement, and balance sheet: discuss results. 7 On June 1, 2017 Hightower Service Co. was started with an initial investment in the company of $22,100 8 cash. Here are the assets and liabilities of the company at June 30, and the revenues and expenses for the month 9 of June, its first month of operations: Cash Accounts receivable Serv Supplies Advertising expense Equipment Common Stock $12,000 500 Notes payable Accounts payable Supplies expense Maintenance and repair expense Utilities expense Salaries and wages expense $4,600 10 4,000 7,500 11 1,000 revenue 12 600 2,400 400 13 300 14 1,400 26,000 22,100 15 16 $1,400 17 In June, the company issued no additional stock, but paid dividends of 18 19 Instructions 20 (a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at 21 June 30, 2017. 22 Hightower SERVICE CO. Income Statement 23 24 For the Month Ended June 30, 2017 25 Revenues 26 Account title Amount 27 Expenses Account title 28 Amount 29 Account title Amount Amount Amount Amount 30 Account title 31 Account title 32 Account title 33 Total expenses Net income Formula 34 Formula 35 36 Hightower SERVICE CO, Retained Earnings Statement For the Month Ended June 30, 2017 37 38 20 Datainadanminae Ima 1 General Instructions PDF Saving Instructions A waunt A E1-15 P1-3A Select destination and press ENTER or choose Paster + Ma lih Help Window Data Insert Format Tools View Excel File Edit ch01(1) Autoave Number 9 wrap Text A A X Cu 10 Times New Roman $ % 9 COMerge & Center Ih Copy w A - BIU Paste- 3Format x fAmount M31 T UV W S R Q M N K L H F G E C ror me Montn naea JuITe 30, 2012 Amount Retained earnings, June 1 Add: Account title 39 Amount 40 Formula 41 Amount Less: Account title Retained camings, June 30 42 Formula 43 44 Hightower SERVICE CO. Balance Sheet 45 46 June 30, 2017 47 Assets 48 Amount Account title 49 Amount Account title Account title Account title 50 Amount 51 Amount 52 Total assets Formula 53 54 Liabilities and Stockholders' Equity 55 Liabilities 56 Amount 57 Account title 58 Account title Amount 59 Total liabilities Formula Stockholders' equity 60 61 Account title Amount Amount 62 Account title 63 Total stockholders' equity Total liabilities and stockholders' equity Formula 64 Formula 65 (b) Briefly discuss whether the company's first month of operations was a success. Enter text answer here. Incorporate computations such as retum on revenue and return on initial investment in your answer 66 67 68 69 70 71 Return revenue-Income divided by revenue; return on investment is net income divided by common stock. (e) Discuss the company's decision to distribute a dividend Enter text answer here. Include the dividend payout ratio (percentage of dividends to net income in your answer). 72 73 74 75 76 77 a Genaral Instructions PDF Saving Instructions A E1-15 P1-3A + Select destination and press ENTER or choose Paste