Scott Douma established Top Notch Computer Services on July 1, 2004. The effect of each transaction and the balances after each transaction for July are shown in the table at the top of the following page.
Instructions
1. Prepare an income statement for the month ended July 31, 2004.
2. Prepare a retained earnings statement for the month ended July 31, 2004.
3. Prepare a balance sheet as of July 31, 2004.
4. Prepare a statement of cash flows for the month ended July 31, 2004.
|
Assets |
= |
Liabilities |
+ |
Stockholders’ Equity |
||||||
|
|
|
|
|
|
Notes |
|
Capital |
|
Retained |
|
|
|
Cash |
+ |
Land |
= |
Payable |
+ |
Stock |
+ |
Earnings |
|
|
a. |
+18,000 |
|
|
|
|
|
+18,000 |
|
|
Investment |
|
b. |
+12,250 |
|
|
|
|
|
|
|
12,250 |
Fees earned |
|
Bal. |
30,250 |
|
|
|
|
|
18,000 |
12,250 |
|
|
|
c. |
2,000 |
|
|
|
|
|
|
2,000 |
|
Rent expense |
|
Bal. |
28,250 |
|
|
|
|
|
18,000 |
|
10,250 |
|
|
d. |
+10,000 |
|
|
|
+10,000 |
|
|
|
|
|
|
Bal. |
38,250 |
|
|
|
10,000 |
|
18,000 |
|
10,250 |
|
|
e. |
25,000 |
|
+25,000 |
|
|
|
|
|
|
|
|
Bal. |
13,250 |
|
25,000 |
|
10,000 |
|
18,000 |
|
10,250 |
|
|
f. |
1,150 |
|
|
|
|
|
|
|
800 |
Auto expense |
|
|
|
|
|
|
|
|
|
|
350 |
Misc. expense |
|
Bal. |
12,100 |
|
25,000 |
|
10,000 |
|
18,000 |
|
9,100 |
|
|
g. |
2,500 |
|
|
|
|
|
|
|
2,500 |
Salaries expense |
|
Bal. |
9,600 |
|
25,000 |
|
10,000 |
|
18,000 |
|
6,600 |
|
|
h. |
1,000 |
|
|
|
|
|
|
|
1,000 |
Dividends |
|
Bal. |
8,600 |
|
25,000 |
|
10,000 |
|
18,000 |
|
|
5,600 |