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Fowler Company was started on May 1 with an investment of $45,000 cash. Following are the assets, liabilities, and common stock of the company on May 31, 2022, and the revenues and expenses for the month of May, its first month of operations. Accounts Receivable $ 8,400 Notes Payable $26,000 Service Revenue 16,400 Salaries and wages expense 1.900 Advertising expense 2,800 Equipment 58,800 Accounts payable 4,400 Maintenance and repairs expense 2.100 Cash 10,800 Insurance expense 400 Common stock 45,000 No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions Prepare an income statement and a retained earnings statement for the month of May 2022.

Fowler Company was started on May 1 with an investment of $45,000 cash. Following are the assets, liabilities, and common stock of the company on May 31, 2022, and the revenues and expenses for the month of May, its first month of operations. Accounts Receivable $ 8,400 Notes Payable $26,000 Service Revenue 16,400 Salaries and wages expense 1.900 Advertising expense 2,800 Equipment 58,800 Accounts payable 4,400 Maintenance and repairs expense 2.100 Cash 10,800 Insurance expense 400 Common stock 45,000 No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions Prepare an income statement and a retained earnings statement for the month of May 2022.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Fowler Company was started on May 1 with an investment of $45,000 cash. Following are the assets, liabilities, and common stock of the company on May 31, 2022, and the revenues and expenses for the month of May, its first month of operations. Accounts Receivable $ 8,400 Notes Payable $26,000 Service Revenue 16,400. Salaries and wages expense 1.900 Advertising expense 2,800 Equipment 58,800 Accounts payable 4,400 Maintenance and repairs expense 2,100 Cash 10,800 Insurance expense 400 Common stock 45,000 No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions Prepare an income statement and a retained earnings statement for the month of May 2022.
Transcribed Image Text:Fowler Company was started on May 1 with an investment of $45,000 cash. Following are the assets, liabilities, and common stock of the company on May 31, 2022, and the revenues and expenses for the month of May, its first month of operations. Accounts Receivable $ 8,400 Notes Payable $26,000 Service Revenue 16,400. Salaries and wages expense 1.900 Advertising expense 2,800 Equipment 58,800 Accounts payable 4,400 Maintenance and repairs expense 2,100 Cash 10,800 Insurance expense 400 Common stock 45,000 No additional common stock was issued in May, but a dividend of $1,600 in cash was paid. Instructions Prepare an income statement and a retained earnings statement for the month of May 2022.
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