Problem 2-7A Preparing an income statement, statement of owners equity, and balance sheet. LO P3

Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On March 31, the companys records show the following accounts and amounts for the month of March.

Equipment	$	12,000		Office supplies	$	3,100
Salaries expense		4,600		Rental revenue		2,100
Consulting revenue		20,000		Advertising expense		720
Cash		11,200		Prepaid insurance		2,600
Utilities expense		520		Accounts payable		6,420
Note payable		4,000		Note receivable		4,100
Accounts receivable		5,100		Rent expense		3,600
A. Lopez, Withdrawals		3,600		Unearned revenue		620

Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of owners equity. The owners capital account balance at February 28 was $0, and the owner invested $18,000 cash in the company on March 1. 3. Prepare a March 31 balance sheet. Hint: Use the owners capital account balance calculated in part 2.