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Make an income statement for the month

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Reference no: EM132485476

Point 1. As of December 31st, Boston Company had $13,000 in cash, held $90,000 in inventory, and owned other items worth $15,000. Boston Company also borrowed $45,000 from Huntington Bank.

Question 1: Make a Balance Sheet for Boston Company as of December 31st.

Point 2. During the month of July, Acme Consulting recorded the following transactions.

1. The owners invested $20,000 into the business.

2. The month of July's rent of $450 was prepaid in cash.

3. Equipment costing $8500 was bought on credit.

4. $450 worth of office supplies were purchased.

5. Advertising costing $600 was paid for in cash.

6. Paid $2500 of employees salaries.

7. Earned 15,000 in revenue from Consulting, 5,000 of which was paid in cash.

8. Paid $5000 of the $8500 owed to the equipment supplier

9. Used $200 worth of the office supplies

10. Charged $900 to the corporate credit card

Answer the following:

Question  a. Make an analysis of the month's transactions in a tabular format.

Question  b. Make an income statement for the month.

Question c. Explain why the change in the Cash account and the month's income are not the same.

Reference no: EM132485476

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