Negative margin is when the value of the service, good, or resource does not complete cover the cost. theoretically, by reducing the cost by $1.2 million it will make the margin positive by $200,000. meaning that since the negative margin or value, is down/negative $1 million, by reducing the cost by $1.2million makes the value of the service, product, or resource cover the cost thus resulting in a slight but still positive margin.

On june 1, 2017, blossom company was started with an initial investment in the company of $22,360 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 $4,960 notes payable $12,720 accounts receivable 4,340 accounts payable 840 service revenue 7,860 supplies expense 1,100 supplies 2,300 maintenance and repairs expense 700 advertising expense 400 utilities expense 200 equipment 26,360 salaries and wages expense 1,760 common stock 22,360 in june, the company issued no additional stock but paid dividends of $1,660. prepare an income statement for the month of june.