please solve with explanation Problem 13A On June 1 2017 Win

please solve with explanation

Problem 1-3A On June 1, 2017, Windsor, Inc. was started with an initial investment in the company of $22,420 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: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock $12,460 970 1,100 700 200 1,630 $4,830 Notes payable 4,470Accounts payable 7,730 Supplies expense 2,300 Maintenance and repairs expense 400 Utilities expense 26,230 Salaries and wages expense 22,420 In June, the company issued no additional stock but paid dividends of $1,720

Solution

Windsor Inc Retained Earnings Statement For the year ending June 30,2017 Retained earnings , june 1,2017 0 Add: Net income 3,700 3700 less: Dividends 1,720 Retained earnings as on june 30,2017 1,980 Income staatment for the year ending June 30,2017 Revenue service revenue 7,730 less: Expenses Advertising expense 400 Supplies expense 1,100 Maintenance and repairs expense 700 Utilities expense 200 Salaries and wage expense 1,630 total expense 4,030 Net income 3,700 Balance Sheet As on June 30,2017 Assets Cash 4,830 Accounts receivable 4,470 Supplies 2,300 Equipment 26,230 Total Assets 37,830 Liabilities and Stockholder\'s Equity Liabilities. Accounts payable 970 Notes payable 12,460 total liabilities 13,430 Stockholder\'s Equity Common Stock 22,420 Retained earnings 1,980 total Stockholder\'s Equity 24,400 total liabilities and Stockholder\'s Equity 37,830