81. 
    

    Account Title	Debit ($) (Dec)	Credit ($) (Dec)	Debit ($) (Jan)	Credit ($) (Jan)
    Cash	170,000		175,000
    Accounts Receivable	190,000		195,000
    Inventory	200,000		205,000
    Prepaid Expenses	85,000		90,000
    Equipment	420,000		430,000
    Accumulated Depreciation		140,000		145,000
    Accounts Payable		165,000		170,000
    Notes Payable		40,000		35,000
    Common Stock		310,000		320,000
    Retained Earnings		260,000		270,000
    Sales Revenue		640,000		660,000
    Cost of Goods Sold	230,000		235,000
    Rent Expense	72,000		74,000
    Utilities Expense	21,000		22,000
    Salary Expense	150,000		155,000
    -------------------------	----------------------	----------------------	----------------------	----------------------
    Total	1,320,000	1,320,000	1,360,000	1,360,000

    Requirements:

    • Prepare a comparative income statement for December and January.
    • Create a comparative balance sheet as of the end of December and January.
    • Calculate the change in retained earnings between December and January.
    • Analyze the financial performance and changes in financial position over the two months.