Martin Company Had the Following Transactions During Its First Month

question 1

Essay

Martin Company had the following transactions during its first month of operations:
June 1 The company received cash of $35,000 and issued common stock to the shareholders.
2 Borrowed $20,000 from the bank and signed a long-term note payable.
8 Purchased equipment with a short-term note payable for $10,000.
9 Performed services billed at $3,000 and received cash of $3,000.
10 Performed services for a client on account, $6,500.
12 Employees worked two weeks and were paid salaries of $1,000.
15 Paid the short-term note payable from the June 8 purchase.
22 Purchased office supplies on account for $7,000.
30 Paid amount due for office supplies.
30 Paid June's monthly rent of $500.
30 Paid the monthly income taxes of $2,200.
30 The Board of Directors declared and paid dividends of $1,000.
Required:
1. Journalize the entries. Omit the explanations.
2. Prepare a single-step income statement for the first month of operations. Include a proper heading.
3. Prepare a statement of retained earnings for the first month of operations. Include a proper heading.

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Definitions:

Compensatory Strategy

A method designed to offset or make up for a deficiency or limitation, often utilized in educational settings, workplace accommodations, or social policies.

Specific Learning

Pertains to a particular or focused area of learning, often implying specialized education.

Wheelchair

A chair mounted on wheels for use by individuals who cannot walk due to illness, injury, or disability.

Social Policy

Policies designed to address social issues and improve human welfare, including education, health, housing, and employment.