Financial statements OBJ. 5 Jose Loder established Bronco Consulting on August 1, 2016. The effect of each transaction and the balances after each transaction for August follow:

Assets 5Liabilities 1 Stockholders’ Equity Cash +

Accounts Receivable + Supplies =

Accounts Payable +

Common Stock − Dividends +

Fees Earned −

Salaries Expense −

Rent Expense −

Auto Expense −

Supplies Expense −

Misc.

Expense

a. +75,000 +75,000

b. +9,000 +9,000 Bal. 75,000 9,000 9,000 75,000

c. +92,000 +92,000 Bal. 167,000 9,000 9,000 75,000 92,000

d. –27,000 –27,000 Bal. 140,000 9,000 9,000 75,000 92,000 –27,000

e. –6,000 –6,000 Bal. 134,000 9,000 3,000 75,000 92,000 –27,000

f. +33,000 +33,000 Bal. 134,000 33,000 9,000 3,000 75,000 125,000 –27,000 g. –23,000 –15,500 –7,500 Bal. 111,000 33,000 9,000 3,000 75,000 125,000 –27,000 –15,500 –7,500 h. –58,000 –58,000 Bal. 53,000 33,000 9,000 3,000 75,000 125,000 –58,000 –27,000 –15,500 –7,500 i. –6,100 –6,100 Bal. 53,000 33,000 2,900 3,000 75,000 125,000 –58,000 –27,000 –15,500 –6,100 –7,500 j. –5,000 –5,000 Bal. 48,000 33,000 2,900 3,000 75,000 –5,000 125,000 –58,000 –27,000 –15,500 –6,100 –7,500 Instructions 1. Prepare an income statement for the month ended August 31, 2016.

2. Prepare a retained earnings statement for the month ended August 31, 2016.

3. Prepare a balance sheet as of August 31, 2016.

4. (Optional) Prepare a statement of cash flows for the month ending August 31, 2016.