Preparing an Income Statement and Balance Sheet
Painter Corporation was organized by five individuals on January 1, 2011. At the end of January 2011, the following monthly financial data are available:
Total revenues................... $299,000
Total expenses (excluding income taxes)........ 189,000
Income tax expense (all unpaid as of January 31).... 34,500
Cash balance, January 31, 2011........... 65,150
Receivables from customers (all considered collectible).. 34,500
Merchandise inventory (by inventory count at cost)... 96,600
Payables to suppliers for merchandise purchased from them
(will be paid during February 2011)......... 26,450
Contributed capital (2,600 shares)........... 59,800
No dividends were declared or paid during 2011.
Required:
Complete the following twostatements:

PAINTER CORPORATION Income Statement For the Month of January 2011 Total revenues Less: Total expenses (excluding income tax) Pretax income Less: Income tax expense Net income PAINTER CORPORATION Balance Sheet At January 31, 2011 Assets Cash Receivables from customers Merchandise inventory Total assets Liabilities Payables to suppliers Income taxes payable Total liabilities Stockholders' Equity Contributed capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity