• 
  

  Account Title	Debit ($) (Jan)	Credit ($) (Jan)	Debit ($) (Feb)	Credit ($) (Feb)
  Cash	50,000		60,000
  Accounts Receivable	80,000		85,000
  Inventory	120,000		110,000
  Prepaid Expenses	10,000		12,000
  Equipment	200,000		210,000
  Accumulated Depreciation		30,000		35,000
  Accounts Payable		60,000		65,000
  Notes Payable		50,000		45,000
  Common Stock		150,000		160,000
  Retained Earnings		100,000		110,000
  Sales Revenue		300,000		320,000
  Cost of Goods Sold	120,000		125,000
  Rent Expense	20,000		22,000
  Utilities Expense	5,000		6,000
  Salary Expense	40,000		45,000
  -------------------------	----------------------	----------------------	----------------------	----------------------
  Total	525,000	525,000	550,000	550,000

  Requirements:

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