Question

! Required Information Use the following information for Exercises 25-27 below. (Static) (The following information applies to the questions displayed below.) Carmen Camry operates a consulting firm called Help Today, which began operations on December 1, On Decemb 31, the company's records show the following selected accounts and amounts for the month of December Cash Accounts receivable office supplies office equipment Land Accounts payable Common stock 25,360 Dividends 22,360 Consulting revenue 5,250 Rent expense 20,000 Salaries expense 44,000 Telephone expense 10,500 Miscellaneous expenses 102,000 6,000 27.000 9,550 5,600 860 520 Exercise 2-25 (Static) Preparing an income statement LO P1 Use the above information to prepare a December income statement for the business. HELP TODAY Income Statement For Month Ended December 31 Prev Next >

Answer 1

Help Today Income statement For the month end August 31 Particulars Revenues : Consulting fees earned Amount 27000 Total Revenue 27000 Expenses: Rent Expenses Salaries Expenses Telephone Expenses Miscellaneous Expenses 9550 5600 860 520 Total Expenses 16530 Net Income 10470

Help Today Statement of Retained Earnings For the month ended August 31 Retained Earnings , July 31 Add: Net Income 0 Amount 10500 10470 Help Today Balance Sheet As of August 31 Amount Liabilities: 25300 Accounts Payable 22360 5250 Equity : 44000 Common Stock 20000 Retained Earnings Assets : Cash Accounts Receivables Office Supplies Land Office equipment Less: Dividends Retained Earnings , August 31 -6000 4470 102000 4470 Total Assets 116910 Total Liabilities and equity 116970