Question

Required information Use the following information for Exercises 16-18 below. Skip to question [The following information applies to the questions displayed below.] Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following selected accounts and amounts for the month of August. Cash $ 25,270 Dividends $ 5,910 Accounts receivable 22,280 Consulting fees earned 26,920 Office supplies 5,150 Rent expense 9,460 Land 43,940 Salaries expense 5,510 Office equipment 19,910 Telephone expense 760 Accounts payable 10,700 Miscellaneous expenses 430 Common stock 101,000 Exercise 2-16 Preparing an income statement LO C3, P3 Use the above information to prepare an August income statement for the business.HELP TODAY Balance Sheet Liabilities: 25,310 Accounts payable 22,320 5,200 Equity: 19,960 Common stock 43,970 Retained earnings Assets: ces Cash $ 10,700 Accounts receivable Office supplies Office equipment Land 101,400 4,660 Total equity $ 116,760 Total Liabilities and Equity 106,060 Total Assets 116,760

Answer 1

Answer:

Help Today

HELP TODAY

Income Statement for the year ended August 31,

Consulting fees earned             $26,920

Office supplies              $5,150

Rent expense                 9,460

Salaries expense            5,510

Telephone expense         760

Miscellaneous expenses 430     $21,310

Net income                                    $5,610

Dividends                                        (5,910)

Retained earnings                          ($300)

HELP TODAY

Balance Sheet as of August 31

Assets

Current assets:

Cash                        $ 25,270

Accounts receivable 22,280   $47,550

Long-term assets:

Land                          43,940

Office equipment      19,910    $63,850

Total assets                              $111,400

Liabilities and Equity

Current liabilities:

Accounts payable                    $10,700

Equity:

Common stock      101,000

Retained earnings     (300)   $100,700

Total liabilities and equity       $111,400

Explanation:

a) Data and Calculations:

Cash $ 25,270

Dividends $ 5,910

Accounts receivable 22,280

Land 43,940

Office equipment 19,910

Accounts payable 10,700

Common stock 101,000

Consulting fees earned 26,920

Office supplies 5,150

Rent expense 9,460

Salaries expense 5,510

Telephone expense 760

Miscellaneous expenses 430