ANSWER FOR NUMBER 3

Chapter 1 Homework eBook Calculator Common Stock Retained Earnings Total 1. EX.01.01 Balances, August 1, 2011 Issued common stock 2. EX.01.04 Net income 3. EX.01.06 Dividends 4. EX.01.08 Balances, August 31, 20Y1V $ 5. EX.01.11 Feedback 6. EX.01.12 Check My Work 7. EX.01.13 2. Follow Example Exercise 1-5. Recall that the statement of retained earnings considers beginning retained earnings, net income for the year and dividends to calculate the ending retained earnings. The net income from the income statement is needed to complete the statement of retained earnings. 8. EX.01.16 3. Prepare a balance sheet as of August 31, 20Y1. When entering assets, enter them in order of liquidity. 9. EX.01.17 10. EX.01.18 Bronco Consulting Balance Sheet August 31, 2011 11. PR.01.03B Assets $ 48,000 Cash Accounts receivable 33,000 2,900 Supplies Total assets $ 83,900 Liabilities Accounts payable $ 3,000 Common stock Stockholders' Equity $ 75,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Feedback Check My Work Check My Work Previous Progress: 11/11 items Chapter 1 Homework eBook Calculator 1. EX.01.01 Financial Statements Jose Loder established Bronco Consulting on August 1, 20Y1. The effect of each transaction and the balances after each transaction for August follow: 2. EX.01.04 Assets = Liabilities + Stockholders' Equity 3. EX.01.06 Accounts Cash + Accounts Receivable + Supplies = Common - Dividends + Stock +75,000 Fees Earned Salaries Expense Rent Expense Auto Expense Supplies Expense Misc. Expense Payable 4. EX.01.08 a. +75,000 5. EX.01.11 +9,000 +9,000 9,000 9,000 75,000 6. EX.01.12 +92,000 Bal. 75,000 C. +92,000 Bal. 167,000 d. -27,000 7. EX.01.13 9,000 9,000 75,000 92,000 -27,000 8. EX.01.16 Bal. 140,000 9,000 75,000 92,000 -27,000 9,000 -6,000 9. EX.01.17 e. -6,000 Bal. 134,000 9,000 3,000 75,000 92,000 -27,000 10. EX.01.18 +33,000 +33,000 11. PR.01.03B 33,000 9,000 3,000 75,000 125,000 -27,000 -15,500 -7,500 Bal. 134,000 g. -23,000 Bal. 111,000 h. -58,000 Bal. 53,000 33,000 9,000 3,000 75,000 125,000 -27,000 -15,500 -7,500 -58,000 -58,000 33,000 3,000 75,000 125,000 -27,000 -15,500 -7,500 9,000 -6,100 -6,100 33,000 2,900 3,000 75,000 125,000 -58,000 -27,000 -15,500 -6,100 -7,500 Bal. 53,000 j. -5,000 Bal. 48,000 Required: -5,000 -5,000 33,000 2,900 3,000 75,000 125,000 -58,000 -27,000 -15,500 -6,100 -7,500 1. Prepare an income statement for the month ended August 31, 20Y1. Bronco Consulting Income Statement For the Month Ended August 31, 2041 $ Fees earned 125,000 Expenses: Check My Work Previous Progress: 11/11 items