• 
  

  Account Title	Debit ($) (Jul)	Credit ($) (Jul)	Debit ($) (Aug)	Credit ($) (Aug)
  Cash	140,000		145,000
  Accounts Receivable	160,000		165,000
  Inventory	170,000		175,000
  Prepaid Expenses	48,000		52,000
  Equipment	360,000		370,000
  Accumulated Depreciation		110,000		115,000
  Accounts Payable		130,000		135,000
  Notes Payable		85,000		80,000
  Common Stock		240,000		250,000
  Retained Earnings		190,000		200,000
  Sales Revenue		500,000		520,000
  Cost of Goods Sold	200,000		205,000
  Rent Expense	58,000		60,000
  Utilities Expense	14,000		15,000
  Salary Expense	115,000		120,000
  -------------------------	----------------------	----------------------	----------------------	----------------------
  Total	1,120,000	1,120,000	1,160,000	1,160,000

  Requirements:

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