Financial information related to the proprietorship of Burst Interiors for March and April 2008 is as follows:

a. Prepare balance sheets for Burst Interiors as of March 31 and as of April 30, 2008.

b. Determine the amount of net income for April, assuming that no additional capital stock was issued and no dividends were paid during the month.

c. Determine the amount of net income for April, assuming that no additional capital stock was issued but dividends of $15,000 were paid during the month.

Transcribed Image Text:

March 31, 2008 Accounts payable Accounts receivable $18,480 April 30, 2008 $ 19,920 40,800 46,950 Capital stock 20,000 20,000 Retained earnings ? ? Cash 72,000 122,400 Supplies 3,600 3,000