Question

On June 1, 2017, Novak Corp. was started with an initial investment in the company of $22,500 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations: $4,960 Notes payable Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock 4,400 7,860 2,310 400 26,360 22,500 Accounts payable Supplies expense Maintenance and repairs expense Ulilities expense Salaries and wages expense $12,720 900 ,090 690 210 1,760 In June, the company issued no additional stock but paid dividends of $1,800.

Prepare an income statement for the month of June. Novak Corp. Income Statement June 30, 2017 For the Month Ended June 30, 2017 For the Year Ended June 30, 2017

Prepare a retained earnings statement for the month of June. (List items that increase retained earnings first.) Novak Corp. Retained Earnings Statement

Prepare a balance sheet at June 30, 2017. (List assets in order of liquidity.) Novak Corp. Balance Sheet Assets Liabilities and Stockholders Equity

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Answer #1

For the given information Novak Corporation has Net income of $ 3,710 for the month ended June 30, 2017 and the balance of Retained Earning was $$ 1,910.

Answer: Novak Co Income Statement For the Month Ended June 30.2017 Revenues Service Revenue $ 7,860 Expenses Advertising Ex Supplies Expense Maintenance and Repairs Expense Utilities Expense Salaries and Wages Expense $ 400 1,090 690 210 1,760 Total Expenses Net Income / (Loss) 4,150 3,710 Novak Cor Retained Earnings Statement For the Month Ended June 30.2017 Retained Earnings, June 1 Add : Net Income (Loss) 3,710 3,710 1,800 S 1,910 Less Dividends Retained Earnings, June 30 Novak Cor Balance Sheet June 30, 2017 Assets as Accounts Receivable Supplies Equipment lotal Assets $ 4,960 4,400 2,310 26,360 S 38,030 Liabilities and Stockholders Equit Liabilities Notes payable Accounts Payable $12,720 900 Total Liabilities $ 13,620 Stockholders Equit Common Stock Retained earnings Total Stockholders Equity 22,500 1,910 24,410 S38.030 Total Liabilities and Stockholders Equity Created by Universal Document Converter

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