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Carmen Camry operating consulting firm called help today which began operations on August 1st. on August...

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Carmen Camry operating consulting firm called help today which began operations on August 1st. on August 31st the company's records show the following selected accounts and the amounts for the month of August. use the above of information to prepare an August income statement for the business.

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Income Statement: This statement is also called as statement of revenue and expense. Income statement is one of the three financial statements, remaining are balance sheet and cash flow statement. This income statement measures companys financial performance for one accounting cycle. In this statement, total expenses are subtracted from total revenues This income statement shows net income or loss for a particular period Prepare the income statement as below: C Carmy Income Statement For the period ended August 31 Particulars Amount (SAmount (S) Revenues: Consulting fees earned Total Revenues (A 27,000 27,000 Expenses: Rent e Salaries e Tel Miscellaneous e Total Expenses (B) 9,550 5,600 860 520 16,530 Net Income (A- B) 10,470

Statement of retained earnings Retained earnings are cumulative profits of a company after deducting dividends Therefore, all years profits will add to this fund similarly if the company gets a loss then it will retain from this amount. Retained earnings will report in the stockholders equity section of the balance sheet Prepare the statement of retained earnings as below: C Carmy Statement of Retained Earnings For the period ended August 31 Particulars Amount (S) Amount (S) Retained Earnings, Beginnin Add Net income Less: Dividends Retained Earnings, Ending Nil 10,470 6,000) 4,470 Balance sheet: Balance sheet is a statement of financial position. It is one of the main reports in financial statements. It shows the financial position of the company. Balance sheet will be prepared for a specific period. It summarizes a companys assets, liabilities and shareholders equity. It is prepared by using accounting equation that is Assets- Liabilities + Stockholders Equity.

Prepare the balance sheet as below: C Carmy Statement of Retained Earnings For the period ended August 31 Amount (S) Amount (S) ASSETS Current Assets: Cash Accounts receivable Office supplies Total Current Assets (A) Non-Current Assets Land Office e Total Non-Current Assets (B) Total Assets (A +B 25,360 22,360 5,250 52,970 44,000 20,000 64,000 116,970 LIABILITIES& EQUITY Liabilitie:s Current liabilities Accounts payable Total Current Liabilitie Equity Retained earnings Common stock Total Equity Total Liabilities & Equity (C+ D) 10.500 10,500 4,470 102,000 106,470 116,970

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