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Financial information related to Ebony Interiors for February and March 2016 is as follows:
Cash
320,000
380,000
Accounts receivable
800,000
960,000
Supplies
30,000
35,000
Accounts payable
310,000
400,000
Common stock Retained earnings
200,000
February 29, 2016 March 31, 2016
a. Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2016.
b. Determine the amount of net income for March, assuming that no additional common stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for March, assuming that no additional common stock was issued, but dividends of $50,000 were paid during the month.
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