Item 1

Use the following accounts and information to prepare, in good form, an income statement and a retained earnings statement, for the month of August and a balance sheet at August 31, 2024 for ArrowIndustries. You must list the various accounts and their amounts. On the income statement, expenses should be in order of magnitude (greatest to least) and on the balance sheet, assets should be listed in order of liquidity.

Accounts payable$ 4,200Dividends$ 4,500

Accounts receivable2,300Advertising expense1,900

Buildings 72,000Supplies1,700

Cash17,000Notes payable1,900

Service revenue 28,200 Rent expense2,200

Common stock57,800Salaries and wages expense10,700

Retained earnings (beginning)20,200

ARROW INDUSTRIES

Income Statement

For the Month Ended August 31, 2024

Revenues

$

Expenses

$

Total expenses

Net income$ t

ARROW INDUSTRIES

Retained Earnings Statement

For the Month Ended August 31, 2024

Retained Earnings, August 1$

Add:

Less:

Retained Earnings, August 31$t

ARROW INDUSTRIES

Balance Sheet

August 31, 2024

Assets

$

Total assets

$ t

Liabilities and Stockholders Equity

Liabilities

$

Total Liabilities$

Stockholders Equity

$

Total liabilities and stockholders equity

Check figures for Item 1: Net income $13,400; Total liabilities and stockholders equity $93,000