Sheridan Company was started with an initial investment in the company of $19,250 cash. Here are the assets,

Question

Sheridan Company was started with an initial investment in the company of $19,250 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022 and the revenues and expenses for the month of June, its first month of operations: $4,830 $12.460 7.700 2.300 Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense 920 700 200 1.630 19.250 During June. the company issued no additional stock but paid dividends of $1.155. SHERIDAN COMPANY Balance Sheet June 30, 2022 Assets Liabilities and Stockholders' Equity $

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SHERIDAN COMPANY Balance sheet June 30,2022 Assets Cash & Cash Equivalents $4830 Account Receivable $4470 Supplies $2300 Property plant & Equipment $23775 Total Assets $35375 Liabilities & Stockholder’s Equity Liability: Note payable $12460 Account Payable $970 Total Liability $13430 Stockholder’s equity: Common stock $19250 Retained earnings $2695 Total stockholder’s equity $21945 Total liability & stockholder’s equity $35375 Workings: Income statement Service Revenue $7700 Less: Expense Advertising expense -$400 Supplies expense -$920 Maintenance expense -$700 Utilities expense -$200 Salaries & wages expense -$1630 Net Income $3850 Retained Earnings statement Beginning Retained earnings $0 Add: Net income $3850 Less: Dividend $1155 Ending Retained earnings $2695

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Sheridan Company was started with an initial investment in the company of $19,250 cash

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Archived Solution

SHERIDAN COMPANY
Balance sheet
June 30,2022
Assets
Cash & Cash Equivalents		$4830
Account Receivable		$4470
Supplies		$2300
Property plant & Equipment		$23775
Total Assets		$35375
Liabilities & Stockholder’s Equity
Liability:
Note payable	$12460
Account Payable	$970
Total Liability		$13430
Stockholder’s equity:
Common stock	$19250
Retained earnings	$2695
Total stockholder’s equity		$21945
Total liability & stockholder’s equity		$35375

Income statement
Service Revenue	$7700
Less: Expense
Advertising expense	-$400
Supplies expense	-$920
Maintenance expense	-$700
Utilities expense	-$200
Salaries & wages expense	-$1630
Net Income	$3850

Retained Earnings statement
Beginning Retained earnings	$0
Add: Net income	$3850
Less: Dividend	$1155
Ending Retained earnings	$2695