3-38 Financial Statements Refer to problem 3-37 .

1. Prepare a balance sheet as of November 30, 20X0, and an income statement for the month of November.
2. Prepare the retained earnings column of a statement of stockholders equity.
3. Prepare the income statement first.

Refer to this problem 3-37

3-37 Journal, Ledger, and Trial Balance (Alternates are 3-39 through 3-44 .) The balance sheet accounts of Detroit Machinery, Inc., had the following balances on October 31, 20X0:

Following is a summary of the transactions that occurred during November:

a. Collections of accounts receivable, $75,000.

b. Payments of accounts payable, $14,000.

c. Acquisitions of inventory on open account, $80,000.

d. Merchandise carried in inventory at a cost of $70,000 was sold on open account for $96,000.

e. Recognition of rent expense for November, $1,000.

f. Wages paid in cash for November, $8,000.

g. Cash dividends declared and disbursed to stockholders on November 29, $10,000.