Question

Create an Income Statement, Retained Earnings, and Balance Sheet with the information below:

Windsor Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information.

Accounts payable		$ 3,300		Supplies		$ 2,550
Interest expense		410		Supplies expense		470
Equipment (net)		50,000		Depreciation expense		280
Salaries and wages expense		2,500		Service revenue		20,530
Bonds payable		22,400		Salaries and wages payable		560
Unearned service revenue		4,160		Common stock		10,600
Accounts receivable		1,350		Interest payable		160
Cash		4,150

Answer 1

Income Statement:

Windsor Inc.
Income Statement
For the month ended October 31,2022
Service revenue		$20,530
Expenses:
Supplies expense	$470
Depreciation expense	$280
Interest expense	$410
Salaries and wages expense	$2,500
Total expenses		$3,660
Net income		$16,870

Retained earnings statement:

Windsor Inc.
Statement of retained earnings
For the month ended October 31,2022
Retained earnings, October 1, 2022	$0
Add: net income	$16,870
Retained earnings, October 31,2022	$16,870

Balance Sheet:

Windsor Inc.
Balance Sheet
At October 31,2022
Assets		Liabilties and stockholders' Equity
Cash	$4,150	Accounts payable	$3,300
Accounts receivable	$1,350	Salaries and wages payable	$560
Supplies	$2,550	Interest payable	$160
Equipment (net)	$50,000	Unearned service revenue	$4,160
		Bonds payable	$22,400
		Total liabiliteis	$30,580
		Stockholders' equity:
		Common stock	$10,600
		Retained earnings	$16,870
		Total stockholdes' Equity	$27,470
Total assets	$58,050	Total liabilities and stockholders' equity	$58,050