On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the companys
Question:
On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000
Cash withdrawals by owner . . . . . . . . . $ 3,360
Accounts receivable . . . . . . . . . . . . . . . . 13,000
Consulting fees earned . . . . . . . . . . . . . 15,000
Office supplies . . . . . . . . . . . . . . . . . . . . 4,250
Rent expense . . . . . . . . . . . . . . . . . . . . . . 2,550
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Salaries expense . . . . . . . . . . . . . . . . . . . 6,000
Office equipment . . . . . . . . . . . . . . . . . 28,000
Telephone expense . . . . . . . . . . . . . . . . . . . 660
Accounts payable . . . . . . . . . . . . . . . . . . . 7,500
Miscellaneous expenses . . . . . . . . . . . . . . . 680
Owner investments . . . . . . . . . . . . . . . . . 74,000
Step by Step Answer:
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta