Problem:

On June 1, 20D, Global Services, Inc., was started with $30,000 invested by the owners as contributed capital. On June 30, 20D, the accounting records contained the following mounts:

• Accounts Payable $ 1,200
• Accounts Receivable 4,200
• Accumulated Depreciation 500
• Cash 8,000
• Consulting Fees Revenue 14,200
• Contributed Capital 30,000
• Depreciation Expense 500
• Dividends Declared 2,300
• Office Equipment 20,000
• Office Supplies 750
• Office Supplies Expense 400
• Rent Expense 2,600
• Salary Expense 6,800
• Telephone Expense 350
• The dividends have already been paid during the month of June, 20D.
• Remember the headings.

Required:

Question 1: Prepare an income statement for June 20D, the first month of Global Services operation. Ignore income taxes.

Question 2: Prepare a statement of stockholders' equity for June 20D, the first month of Global Services' operation. Ignore income taxes. Consider both Contributed Capital (another name for Common Stock) and Retained Earnings.

Question 3: Prepare a classified balance sheet (current assets, non-current assets, current liabilities, long-term debt and equity) for June 20D, Global Services first month of operations.