Prepare the financial statements using the attached file and send to me via Canvas.

To prepare the financial statements, replace XXX with account titles and fill in grey areas with amounts.

Clayton Accounting is a firm that prepares tax returns for small businesses. The company started the business on Sep 1 of the current year. Business transactions for September are as follow: 1-Sep Clayton Accounting sells shares of stock for $ 10,000 cash 5-Sep Company pays rent for September $ 2,000 9-Sep Company sells services for cash $6,000 20-Sep Company purchases equipment on account (due in 30 days) $ 1,000 25-Sep Company pays wages for month $ 2,000 30-Sep Paid Dividends $ 500 Assets 1-Sep Cash 5-Sep Cash 9-Sep Cash 20-Sep Equipment 25-Sep Cash 30-Sep Cash = 10000 -2000 6000 1000 -2000 -500 12500 Expenses Rent Wages Total Expenses Net Income (Loss) + Equity Stock + Revenue Accts Pay Expenses Rent 2000 Wages 2000 6000 1000 Dividends = - 10000 Tax Returns Clayton Accounting Income Statement For the Period Ending Sep 30 Revenue Tax Returns Liabiltiies 6 1000 -500 9500 + + 6000 Clayton Accounting Statement of Retained Earnings For the Period Ending Sep 30 Beg Balance Net Income (Loss) Dividends Paid Ending Balance -0- - Clayton Accounting Balance Sheet 30-Sep Assets Cash Equipment Liabiltiies Accounts Payable Equity Common Stock Retained Earnings Total Equity Total Assets Total Liabilities & Equity 4000 Ed's Bike Shop January, 2015 Transactions ASSETS Cash Sold Stock for 10,000 Sold repair services 1,200 cash Bike Parts + A/P STOCKHOLDERS EQUITY Common Stock + REVENUE - EXPENSES Bike Sales Rent Repair Parts 10,000 2,500 ### (700) 700 1,200 Used repair parts 200 Paid 700 on account for bike parts LIABILITIES 10,000 Pruchased bike parts on account 2,500 Paid shop rent 700 = ### (200) 200 (700) 9,800 ### 2,300 = INCOME STATEMENT FOR MONTH ENDING JAN, 2015 REVENUE XXX EXPENSES XXX XXX TOTAL EXP NET INCOME 1,800 + 10,000 STATEMENT OF RETAINED EARNINGS FOR MONTH ENDING JAN, 2015 BEG BALANCE $ - XXX DIVIDENDS - + 1,200 - 700 200 BALANCE SHEET January 31, 2015 - ASSETS XXX XXX TOTAL ASSETS $ - STOCKHOLDERS EQUITY XXX XXX TOTAL STOCKHOLDER EQUITY $ - TOTAL LIAB & STOCKHLDR EQUITY $ - LIABILITIES XXX ENDING BALANCE RETAINED EARNINGS $