Assume Island Coffee Roasters Corporation ended the month of August 2022 with these data:

Requirement
Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2022.

Transcribed Image Text:

Payments of cash: Acquisition of equipment. Dividends... Retained earnings August 1, 2022.. Retained earnings August 31, 2022.. Utilities expense Adjustments to reconcile net income to net cash provided by operations............ Salary expense.......... $200,000 2,700 0 ? 5,800 1,400 78,100 Cash balance, August 1, 2022.... $ Cash balance, August 31, 2022.. Cash receipts: Issuance (sale) of stock to owners Rent expense... Common stock.... Equipment... Office supplies. Accounts payable. Service revenue.. 0 6,000 13,700 1,800 13,700 200,000 7,500 8,900 279,300