Preparing a Statement of Earnings and a Statement of Financial Position LO1-1 Ducharme Corporation was organized by five individuals on January 1, 2020. At the end of January 2020, the following monthly financial data are available:

No dividends were declared in January 2020.

Required:

1. Prepare a summarized statement of earnings for the month of January 2020.
2. Prepare a statement of financial position at January 31, 2020.

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Total revenues Total expenses (excluding income taxes) $299,000 189,000 Income tax expense (all unpaid as at January 31) 34,500 Cash balance, January 31, 2020 65,150 Receivables from customers (all considered collectible) 34,500 Merchandise inventory (by inventory count at cost) 96,600 Payables to suppliers for merchandise purchased from them (will be paid during February 2020) 26,450