On March 1, 2010, Quality Consulting, Inc., was formed when the owners contributed $35,000 cash to the

Question:

On March 1, 2010, Quality Consulting, Inc., was formed when the owners contributed $35,000 cash to the business in exchange for common stock. On April 1, 2010, the company paid $24,000 cash to rent office space for the coming year. The consulting services generated $62,000 of cash revenue during 2010. Prepare an income statement, statement of changes in shareholders’ equity, and statement of cash flows for the 10 months ended December 31, 2010, and a balance sheet at December 31, 2010.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...