Reference no: EM132624035

Question - Analyzing transactions and preparing financial statements

Sanyu Sony started a new business and completed these transactions during December.

Dec. 1 Sanyu Sony transferred $65,800 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock.

Dec. 2 The company paid $1,800 cash for the December rent.

Dec. 3 The company purchased $14,600 of electrical equipment by paying $6,400 cash and agreeing to pay the $8,200 balance in 30 days.

Dec. 5 The company purchased supplies by paying $800 cash.

Dec. 6 The company completed electrical work and immediately collected $1,800 cash for these services.

Dec. 8 The company purchased $2,820 of office equipment on credit.

Dec. 15 The company completed electrical work on credit in the amount of $6,400.

Dec. 18 The company purchased $470 of supplies on credit.

Dec. 20 The company paid $2,820 cash for the office equipment purchased on December 8.

Dec. 24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.

Dec. 28 The company received $6,400 cash for the work completed on December 15.

Dec. 29 The company paid the assistant's salary of $1,900 cash for this month.

Dec. 30 The company paid $590 cash for this month's utility bill.

Dec. 31 The company paid $920 cash in dividends to the owner (sole shareholder).

Required -

a. Prepare the income statement for the current month.

b. Prepare the statement of retained earnings for the current month.

c. Prepare the balance sheet as of the end of the month.

d. Prepare the statement of cash flows for the current month.