Question

Homework Saved Help Save & Exit Submi Problem 2-7A Preparing an income statement, statement of retained earnings, and balance sheet. LO P3 Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On March 31, Metrix shows the following selected accounts and amounts for the month of March. Equipment Salaries expense Consulting revenue Cash Utilities expense Note payable Accounts receivable Common stock Dividends $ 7,500 3,700 15,500 9,400 340 3,100 4,200 14,400 2,700 Office supplies Rental revenue Advertising expense Prepaid insurance Accounts payable Note receivable Rent expense Unearned revenue $ 2,200 1,200 540 1,700 3,540 3,200 2,700 440 < Prev 7 of 7 Next > to search O DI B 8:42 9/23/ 2 GOT

Answer 1

METRIX Income Statement For the Year Ended December 31
Revenues:
Consulting Revenue	$ 15,500
Rental revenue	$ 1,200
Total revenues		$ 16,700
Expenses :
- Salaries Expense	$ 3,700
- Utilitiess Expense	$ 340
- Advertising Expense	$ 540
- Rent Expense	$ 2,700
Total Expenses		($ 7,280)
Net Income		$ 9,420

METRIX Statement of Retained Earnings
Retained Earnings - March 1	$ 0
Add: Net Income	$ 9,420
	$ 9,420
Less: Dividends Paid	($ 2,700)
Retained Earnings at the end of the Year - March 31	$ 6,720

METRIX Balance Sheet
Assets
Current assets :
Cash	$ 9,400
Accounts Receivable	$ 4,200
Prepaid Insurance	$ 1,700
Office Supplies	$ 2,200
Note Receivable	$ 3,200
Total Current assets		$ 20,700
Property plant and Equipment
Equipment		$ 7,500
Total Assets		$ 28,200
Liabilities and Stockholders' Equity
Liabilities :
Accounts Payable	$ 3,540
Note Payable	$ 3,100
Unearned Revenue	$ 440
Total Current Liabilities		$ 7,080
Stockholders' Equity :
Common Stock	$ 14,400
Retained Earnings	$ 6,720
Total Shareholders Equity		$ 21,120
Total Liabilities and Stockholders' Equity		$ 28,200