Question

From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1 of the current year, Victoria Garza, the sole stockholder, began Garza Décor with an initial investment of $50,000 cash in exchange for common stock. On November 30, her records showed the following items and amounts. Accounts payable Accounts receivable Cash Dividends Fees earned Notes payable $12,000 19,000 21,200 6,000 34,000 4,250 Office Furnishings Rent expense Salaries expense Telephone expense Common stock $40,000 9,600 4,200 250 50,000

From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1 of the current year, Victoria Garza, the sole stockholder, began Garza Décor with an initial investment of $50,000 cash in exchange for common stock. On November 30, her records showed the following items and amounts.

Accounts payable	$12,000	Office Furnishings	$40,000
Accounts receivable	19,000	Rent expense	9,600
Cash	21,200	Salaries expense	4,200
Dividends	6,000	Telephone expense	250
Fees earned	34,000	Common stock	50,000
Notes payable	4,250	​	​

Answer 1

INCOME STATEMENT OF GARZA DÉCOR NOVEMBER 30 Particulars Amount A:Income Fees Earned $ 34,000 Total $ 34,000 B:Expenses Rent Expense $ 9,600 Salaries Expense $ 4,200 Telephone Expense $ 250 Total $ 14,050 STATEMENT OF RETAINED EARNINGS NOVEMBER 30 Particulars Amount Opening Retained Earnings $ Add: Net Income $ 19,950 Total $ 19,950 Less: Divident of current year $ 6,000 BALANCE SHEET OF GARZA DÉCOR AS ON NOVEMBER 30 LIABILITIES AMOUNT ASSET AMOUNT Shareholder's Equity Current Asset Common Stock $ 50,000 Cash $ 21,200 Retained Earnings $ 13,950 Accounts Receivable $ 19,000 Total shareholders equity $63,950 Total current asset $40,200 Current liabilities Fixed assets Accounts Payable $ 12,000 office furnitures $40,000 Non-current liabilities Notes Payable $ 4,250 Retained Earnings at the end $ 13,950 Net Income (A-B) $ 19,950 Total $ 80,200 Total $80,200