Question

Reese 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.

Reese 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 $ 2,460 Interest expense 410 Supplies expense 380 Equipment (net) 48,200 Depreciation expense 270 Salaries and wages expense 2,500 Service revenue 20,920 Bonds payable 21,500 Salaries and wages payable 445 9,100 Unearned service revenue Accounts receivable Cash 4,065 Common stock 1,300 Interest payable 3,950 140 Using the information, answer the following questions.

Answer 1

REESE INC. BALANCE SHEET AS AT OCTOBER 31, 2022 ASSETS Amount ($) Amount ($) Current Assets: Cash 3950 Accounts Receivable 1300 Supplies 2460 7710 Non-current Assets: Equipment (net) 48200 Total Assets 55910 LIABILITIES & SHAREHOLDERS' EQUITY Amount ($) Amount ($) Current Liabilities: Accounts payable Interest payable Salaries & Wages payable Unearned service revenue Bonds payable 3300 140 445 4065 21500 29450 Shareholders' equity: Common Stock Retained Earnings Total Laibilities & shareholders' equity 9100 17360 26460 55910 Note: Bonds payable have been assumed to be current liabilities.