Reference no: EM132813392

Question - On December 31, 2020, Lucky Corp had the following account balances:

Cash 13,400

Retained earnings 4,700

Common stock 3,700

Note payable 5,000

In January 2021, Lucky Corp made the following transactions:

1/2/2021 Purchases $20,000 of inventory on account

1/5/2021 Pays $2,300 for January advertising.

1/6/2021 Sells $8,000 worth of inventory for $12,000 cash.

1/7/2021 Sells $3,000 worth of inventory for $4,500 on account.

1/20/2021 Collects $1,100 of the 1/7/21 credit sales.

1/21/2021 Pays $9,000 of what it owes for inventory.

1/30/2021 Incurs and pays $250 of interest on note.

1/30/2021 Recognizes $175 of income tax expense.

Required - Prepare an income statement and equity statement for the month of January, and a balance sheet for January 31.