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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



  1. Account TitleDebit ($) (Jul)Credit ($) (Jul)Debit ($) (Aug)Credit ($) (Aug)
    Cash140,000
    145,000
    Accounts Receivable160,000
    165,000
    Inventory170,000
    175,000
    Prepaid Expenses48,000
    52,000
    Equipment360,000
    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 Sold200,000
    205,000
    Rent Expense58,000
    60,000
    Utilities Expense14,000
    15,000
    Salary Expense115,000
    120,000
    -----------------------------------------------------------------------------------------------------------------
    Total1,120,0001,120,0001,160,0001,160,000

    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.

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