On October 1, Tiger Woods opened Eagle Restaurant, Inc. Woods is now at a crossroads. The October financial statements paint a glowing picture of the business, and Woods has asked you whether he should expand the business. To expand the business, Woods wants to be earning net income of $10,000 per month and have total assets of $35,000. Woods believes he is meeting both goals.

To start the business, Woods invested $20,000, not the $10,000 amount reported as "Common stock" on the balance sheet. The business issued $20,000 of common stock to Woods. The bookkeeper plugged the $10,000 "Common stock" amount into the balance sheet to make it balance. The bookkeeper made some other errors too. Woods shows you the following financial statements that the bookkeeper prepared.

Required

Prepare corrected financial statements for Eagle Restaurant, Inc.: Income Statement, Statement of Retained Earnings, and Balance Sheet.

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Eagle Restaurant, Inc. Income Statement Month Ended October 31, 20X4 Revenues: Investments by owner Unearned banquet sales revenue... $20,000 $23,000 Expenses: Wages expense Rent expense Dividends Depreciation expense-fixtures 5,000 4,000 3,000 1,000 13,000 Net income $10,000 Eagle Restaurant, Inc. Balance Sheet October 31, 20X4 Liabilities: Assets: Cash Prepaid insurance Insurance expense Food inventory Cost of goods sold (expense) Fixtures (tables, chairs, etc.. Dishes and silverware $6,000 Accounts paya ble.. $5,000 32,000 1,000 Sales revenue 1,000 Acuumulated depreciation- 3,000 fixtures 1,000 38,000 . 14,000 19,000 Owners' equity: 4,000 Common stock 10,000 $48,000 $48,000