Chris Darby established Top-Gun Computer Services on January 1, 2007. The effect of each transaction and the balances after each transaction for January are below shown in the integrated financial statement framework.
Instructions
1. Prepare an income statement for the month ended January 31, 2007.
2. Prepare a retained earnings statement for the month ended January 31, 2007.
3. Prepare a balance sheet as of January 31, 2007.
4. Prepare a statement of cash flows for the month ended January 31, 2007.
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d. Issued notes payable
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10,000
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10,000
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|
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Balances
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47,500
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10,000
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25,000
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12,500
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e. Purchased land
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-30,000
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30,000
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|
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Balances
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17,500
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30,000
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10,000
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25,000
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12,500
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f. Paid expenses
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-1,650
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-1,650
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f.
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Balances
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15,850
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30,000
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10,000
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25,000
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10,850
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g. Paid salary expense
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-3,500
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-3,500
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g.
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Balances
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12,350
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30,000
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10,000
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25,000
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7,350
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f. Operating
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-1,650
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g. Operating
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-3,500
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i. Financing
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-1,500
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Increase in cash
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10,850
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