Question

Required Information [The following information applies to the questions displayed below.) An analysis of transactions made during July by NepCo, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained. Stockholders Equity Accounts Receivable abilities Accounts Payable Sunplies Equipment Common Stock Retained Earnings +1. -1.de Utilities expense 5,702 Service revenue +6,640 +1.ese Service revenue esge 4.98e -2.260 wage expense -1,145 Rent expense 2-a. Prepare an income statement as of July 31. NEPCO Income Statement

Answer 1

2-a.

NEPCO Income statement For the month ended July 31 Revenues: Service revenue 6,750 Less: Expenses: Wages expense Rent expense Utilities expense Total expenses 2,260 1,145 1,040 4,445 Net income 2,305

2-b.

NEPCO Statement of retained earnings For the month ended July 31 Retained earnings, July 1 Add: Net income 2,305 Retained earnings, July 31 2,305

2-c.

NEPCO Balance sheet As at July 31 Assets Current assets: Cash Accounts receivable Supplies Total current assets 2.175 3,990 900 7,065 Property, plant, and equipment: Equipment Total assets 12,840 19.905 Liabilities and stockholders' equity Liabilities: Accounts payable 3,600 Stockholders' equity: Common stock 14,000 Retained earnings 2,305 Total stockholders' equity 16,305 Total liabilities and stockholders' equity | 19,905