Question

Teal Mountain 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 $4,200 Supplies $ 2,630 Interest expense 480 Equipment (net] Salaries and wages expense SUPP & expense 48,000 Depreciation expense 2,800 Service revenus 21,700 Salaries and wages payable 4,050 Common stock 1.200 Interest payable 2,900 310 19.000 420 10,100 Bonds payable Unearned service revenue Accounts receivable Cash Using the information, answer the following questions. (ai) Prepare an income statement for the month of October 2022 TEAL MOUNTAIN INC. Income Statement

Answer 1

G K $ 19,000 F TEAL MOUNTAIN INC. Income Statement for the month ended October 31, 2022 4. Revenue 5 Service Revenue 6 Expense | 7 Salaries and wages expense $ 2,800 Interest Expense $ 350 Supplies expense $ 480 Depreciation expense $ 310 11 Total expenses 12 Net Income $ $ $ 3,900 1,200 2,630 48,000 55,730 $ 3,940 $ 15,060 H J TEAL MOUNTAIN INC. Balance Sheet as on October 31, 2022 Assets Cash Accounts Receivable Supplies Equipment Total Assets Liabilities and Stockholder's Equity Current Assets Accounts Payable $ 4,200 Bonds Payable $21.700 Salaries and wages payable $ 420 Interest Payable $ 200 Unearned service revenue $ 4,050 Total Current Liabilities Stockholder's Equity Common Stock $ 10,100 Retained Earnings $ 15,060 Total Stockholder's Equity | Total Liabilities and Stockholder's equity | 13 TEAL MOUNTAIN INC. Statement of Retained Earnings 16 for the month ended October 31, 2022 17 Retained Earning, June 1, 2022 18 Add: Net Income $ 30,570 $ - $ 15,060 $ 15,060 19 $ 20 Less: Dividends 21 Retained Earnings, June 30, 2022 $ 15,060 $ $ 25,160 55,730 22 23

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