Response to the following problem:
The following "financial statement" was prepared from the records of Armfeld Industries Ltd:
Armfeld Industries Ltd.
Financial Statement
For the Three-Month period Ended November 30, 2015
|
Cash
|
$ 750
|
Bank loan
|
$ 5,000
|
|
Accounts receivable
|
2,200
|
Accounts payable
|
3,000
|
|
Prepaid insurance
|
550
|
Share capital
|
1,000
|
|
Unused supplies
|
300
|
Repair revenue
|
5,000
|
|
Equipment
|
6,000
|
|
|
|
Advertizing expense
|
200
|
|
|
|
Commissions expense
|
1,500
|
|
|
|
Insurance expense
|
SO
|
|
|
|
Rent expense
|
450
|
|
|
|
Wages expense
|
2,000
|
|
|
|
|
$14,000
|
|
$14,000
|
Required:
1. Prepare an income statement and statement of changes in equity for the three-month period ended November 30, 2015. Record the expenses on the income statement in alphabetical order. Assume no share capital was issued during the month.
2. Prepare a balance sheet at November 30.