Prepare an income statement

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Reference no: EM132849463

Question - Carlo forms a new corporation named Global, Inc. on December 31.

The following are the company transactions for December and January:

31-Dec Global issues shares for cash 45,000.

2-Jan Global buys inventory for cash 25,000.

3-Jan Global buys equipment for cash. 20,000

4-Jan Global pays January rent in cash 7,000.

5-Jan Global sells inventory for cash. 23,000.

5-Jan The cost of the inventory Global sold on Jan 5 14,000.

9-Jan Global sells inventory on account 12,000.

9-Jan The cost of the inventory Global sold on Jan 9 5,000.

10-Jan Global takes out a 2-year bank loan 9,000.

27-Jan Global collects $2000 cash for credit sales on Jan 9 2,000.

28-Jan Global pays interest on the loan 200.

29-Jan Global pays a cash dividend 600.

30-Jan Global incurs tax expense 400.

Required - Use this information to prepare an income statement and statement of stockholders' equity for the month of January, and a balance sheet for January 31st.

Reference no: EM132849463

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