Problem 1-9A (Algo) Analyzing transactions and preparing financial statements LO P1, P2

Sanyu Sony started a new business and completed these transactions during December.

Dec.1Sanyu Sony transferred $69,400 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock.2The company paid $1,700 cash for the December rent.3The company purchased $13,900 of electrical equipment by paying $5,700 cash and agreeing to pay the $8,200 balance in 30 days.5The company purchased supplies by paying $900 cash.6The company completed electrical work and immediately collected $1,700 cash for these services.8The company purchased $2,780 of office equipment on credit.15The company completed electrical work on credit in the amount of $6,000.18The company purchased $410 of supplies on credit.20The company paid $2,780 cash for the office equipment purchased on December 8.24The company billed a client $1,000 for electrical work completed; the balance is due in 30 days.28The company received $6,000 cash for the work completed on December 15.29The company paid the assistant's salary of $1,400 cash for this month.30The company paid $510 cash for this month's utility bill.31The company paid $900 cash in dividends to the owner (sole shareholder).

Problem 1-9A (Algo) Part 2 and 3

2-a.Prepare the income statement for the current month.

2-b.Prepare the statement of retained earnings for the current month.

2-c.Prepare the balance sheet as of the end of the month.

3.Prepare the statement of cash flows for the current month.

• Required 2A
• Required 2B
• Required 2C
• Required 3

Prepare the income statement for the current month.

SONY ELECTRIC

Income Statement

For Month Ended December 31

Revenues

Total Revenues

Expenses T

total expenses

Prepare the statement ofretained earnings for the current month.

SONY ELECTRIC

Statement of Retained Earnings

For Month Ended December 31

Retained earnings, $

5,090

Retained earnings, December 31 $5,090