Ashley Rhymer established Fair Play Financial Services on January 1, 2010. Fair Play Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for January are shown below.

Instructions

1. Prepare an income statement for the month ended January 31, 2010.

2. Prepare a statement of owner's equity for the month ended January 31, 2010.

3. Prepare a balance sheet as of January 31, 2010.

4. (Optional). Prepare a statement of cash flows for the month ending January 31,2010.

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Accounts payable $ 14,600 78,000 $ 6,800 13,200 10,250 49,150 232,640 Supplies expense Taxes expense Utilities expense Wages expense Accounts receivable Cash Fees earned Miscellaneous expense 159,200 600,000 Rent expense 80,900