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Problem - Balance sheets, net income
Financial information related to the corporation of Lady Interiors for July and August 2012 is as follows:
July 31, 2012
August 31, 2012
Accounts payable
$ 90,000
$100,000
Accounts receivable
200,000
240,000
Capital stock
?
Cash
80,000
95,000
Retained earnings
130,000
170,000
Supplies
20,000
15,000
Required -
a. Prepare balance sheets for Lady Interiors as of July 31 and August 31, 2012.
b. Determine the amount of net income for August, assuming that no additional capital stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for August, assuming that no additional capital stock was issued, but dividends of $35,000 were paid during the month.
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