Prepare an income statement retained earnings statement

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Reference no: EM131025986

PART 1

GIVEN: John Smith established John's Antique Appraisals Company and completed the following transactions during July, the first month of operations.
John Smith starts with $25,000 in cash.
Opened a business bank account with a deposit of $30,000 in exchange for capital stock.
Purchased a car for use in the business, paid $5,000 down (from the business account) and signed a note for $40,000.
Paid $3,000 monthly rent on office.
Signed a business cell phone plan. Paid $800 for the first month.
Purchased $4,000 of office supplies on account.
Received $61,000 in cash from customers for appraisals completed.
Paid $2,000 of the office supplies bill from (5).
Paid employee salaries of $20,000.
Billed customers for $50,000 of appraisal performed.
Paid dividends of $6,500.
Collected $30,000 cash on account for appraisals billed in (9).
Paid $2,000 travel expenses and $400 miscellaneous expenses.

PART 2

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Prepare an income statement, retained earnings statement, and statement of cash flow for the month of July. Prepare a balance sheet for July 31st.

Reference no: EM131025986

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