Question

Connect Chap X Aracel Engine * lee engineerinx ducation.com/ext/map/index.html?_con=con&external browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fm az Saved Help Save & Exit Molly Meng opens a web consulting business called OnPoint and completes the following transactions in its first month of operations. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Apr. 1 Meng invested $86,000 cash along with office equipment valued at $27,000 in the company. Apr. 2 The company prepaid $10,200 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company made credit purchases for $8,200 in office equipment and $3,800 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $4,600 cash. Apr 9 The company completed a $7,000 project for a client, who must pay within 30 days. Apr. 13 The company paid $12,000 cash to settle the account payable created on April 3. Apr. 19 The company paid $2,880 cash for the premiun on a 12 month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 22 The company received 54,200 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $4,100 on credit. Apr. 28 Meng withdrew $5,700 cash from the company for personal use. Apr. 29 The company purchased $800 of additional office supplies on credit. Apr. 30 The company paid $700 cash for this month's utility bili General Journal Trial Balance Balance Sheet Requirement General Ledger Income Statement St Owners Equity FS Impact An income statement reports the changes in equity attributable to the operation of the business during a specific time period. Revenues increase equity, and expenses decrease equity. OnPoint Company Income Statement For Month ended April 30, 2017 NO < Prey 3 of 3. a ere to search

Net income loss is transferred from the income statement to the:?

Answer 1

In a continuous business and the Retained Earnings balance is maintained, the net income/loss is transferred to Retained earnings, which forms a part of Stockholders' Equity under Liabilities and Stockholders' Equity section of the Balance Sheet.