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:

Theory Comparison

The analytical examination and contrasting of different theories to highlight their unique contributions, limitations, and areas of overlap.

Seventh Stage

Refers to a phase in a developmental theory; for example, in Erikson's theory, it is the "Generativity vs. Stagnation" stage, focusing on the need to create or nurture things that will outlast the individual.

Crisis Resolution

A process or strategy aimed at resolving a critical situation or turning point in an individual's life, often involving problem-solving and coping mechanisms.

First Stage

In various theories, this term can refer to the initial phase of psychological, developmental, or process-oriented models.