Types of business organizations and balance sheet preparation

(Learning Objectives 3 & 6) 10–15 min.

The following are selected accounts of Inchirah Toys on December 31, 2014:

$45,000 7,000 35,000 28,000 4,500 6,000 Common Stock ..........................

Accounts Payable.......................

Equipment..................................

Service Revenue.........................

Supplies Expense.......................

Cash...........................................

$4,000 700 9,000 14,000 4,800 2,000 Dividends ...................................

Utilities Expense.........................

Salaries Expense ........................

Accounts Receivable ..................

Supplies .....................................

Rent Expense .............................

Requirements 1. What type of business organization is Inchirah Toys?

2. Prepare an income statement, a statement of retained earnings, and a balance sheet for Inchirah, Inc. for the month ended December 31, 2014.

AppendixLO1