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.