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Prepare an income statement for the month of July in good form, including balances. Tax is 30% of taxable income. Prepare a balance sheet ending
- Prepare an income statement for the month of July in good form, including balances. Tax is 30% of taxable income.
- Prepare a balance sheet ending July 31st. Please insert appropriate category titles.
- Why do I use for the month of July for the income statement and ending July 31st for the balance sheet?
| Accounts payable | 5,800 | OPERATING EXPENSES: | |
| Accounts receivable | 3,000 | OPERATING INCOME | |
| Accumulated depreciation-Furniture | (4,000) | Prepaid insurance | 3,500 |
| Accrued expense | 2,800 | Retained earnings | 11,900 |
| Additional paid-in capital | 4,500 | SALES REVENUE | 53000 |
| Advertising expense | 1100 | Short- term loans | 7,000 |
| Bad debt expense | 1800 | Tax (30%) | |
| Cash | 4,500 | TAXABLE INCOME (or EBT) | |
| Common Stock | 15,000 | TOTAL ASSETS | |
| COST OF GOODS SOLD | 22,000 | TOTAL CURRENT ASSETS | |
| Current portion of mortgage | 3,000 | TOTAL CURRENT LIABILITIES | |
| Depreciation expense | 300 | TOTAL LIABILITIES | |
| Furniture | 25,000 | TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | |
| GROSS PROFIT | TOTAL STOCKHOLDERS' EQUITY | ||
| Insurance expense | 700 | Utilities expense | 3575 |
| Interest expense | 400 | Wages & benefits | 18600 |
| Inventory | 5,000 | ||
| Investment income | 2500 | ||
| Land | 80,000 | ||
| Mortgage | 67,000 | ||
| NET INCOME | |||
| NET PPE | |||
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