(Determination of statement of income and statement of financial position amounts)

Rhaman Company had the following transactions in its first month of operations:

• 1.On incorporation, the company had issued 11,000 common shares in exchange for $10,000 cash and office furniture and equipment worth $1,000.
• 2.Additional equipment costing $4,000 was purchased for cash.
• 3.Supplies costing $500 were purchased for cash.
• 4.Inventory costing $5,000 was acquired on account. Later in the month, the company paid half of the amount owed. It will pay the remainder next month.
• 5.The entire inventory was sold to customers for $8,000. The company received half of this amount in cash and will receive the remainder next month.
• 6.By the end of the month, $400 of the supplies were used up.
• 7.The equipment was depreciated $100 for the month.
• 8.Operating expenses paid in cash during the month were $1,900.
• 9.Dividends of $200 were declared and paid during the month.

Required

a. Calculate the following amounts for the month:

• i.Sales revenue
• ii.Cost of goods sold
• iii.Total expenses other than cost of goods sold
• iv.Net earnings or loss

b. Calculate the following amounts as at the end of the month:

• i.Cash on hand
• ii.Total assets other than cash
• iii.Total liabilities
• iv.Share capital
• v.Retained earnings