Income statement and balance sheet transactions; prepare the income statement and balance sheet (Learning Objectives 5 & 6) 25–30 min.

Dennise Geary started an interior design company called Interiors by Dennise, Inc., on November 1, 2014. The following amounts summarize the financial position of her business on November 14, 2014, after the first two weeks of operations:

During the remainder of November, the following events occurred:

a. Geary received $20,000 as a gift and used it to buy common stock in the business.

b. Paid off the beginning balance of Accounts Payable.

c. Performed services for a client and received cash of $4,000.

d. Collected cash from a customer on account, $1,100.

e. Purchased supplies on account, $500.

f. Consulted on the interior design of a major office building and billed the client for services performed, $3,500.
g. Sold an additional $8,000 of common stock in the business.
h. Incurred and paid salaries of $2,300.
i. Sold supplies at cost to another interior designer for $180 cash.
j. Paid dividends of $700 to Geary.
Requirements 1. Enter the remaining transactions for the month of November into the expanded accounting equation, calculating new balances after each transaction.
2. Prepare the income statement of Interiors by Dennise, Inc., for the month ended November 30, 2014.
3. Prepare the statement of retained earnings of Interiors by Dennise, Inc., for the month ended November 30, 2014.
4. Prepare the balance sheet of Interiors by Dennise, Inc., at November 30, 2014.AppendixLO1

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Assets Liabilities + Stockholders' Equity Common Stock Retained Earnings Cash Accounts +Receivable Accounts Common Service Salaries Supplies + Equipment = $1,660 + $3,210 + 0 + $26,000 = Payable + Stock + Revenue $4,700 +$21,640 + $6,300 Expense Dividends $1,770 0