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On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner contributed $84,000 cash. On October 31, the company's records show the following items and amounts. Use this information to prepare an October income statement for the business.
Cash . . . . . . . . . . . . . . . . . . . . . . . $11,360Accounts receivable . . . . . . . . . . 14,000Office supplies . . . . . . . . . . . . . . . 3,250Land . . . . . . . . . . . . . . . . . . . . . . . 46,000Office equipment . . . . . . . . . . . . 18,000Accounts payable . . . . . . . . . . . . . 8,500Owner investments . . . . . . . . . . . . 84,000Cash withdrawals by owner. . . . . . $ 2,000Consulting fees earned . . . . . . . . . 14,000Rent expense . . . . . . . . . . . . . . . . . 3,550Salaries expense . . . . . . . . . . . . . . 7,000Telephone expense. . . . . . . . . . . . . 760Miscellaneous expenses . . . . . . . . 580
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