Requirement #7:

Prepare the financial statements for the Quick Tax Corporation as of July 31 in the space below.

You will only be preparing the income statement, statement of retained earnings, and the balance sheet.

The statement of cash flows is a required financial statement, but is not required for this case study.

Requirement #1:
During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,
completed the following transactions.
July 1	Began business by making a deposit in a company bank account of $60,000, in exchange
	for 6,000 shares of $10 par value common stock.
July 3	Paid the current month's rent, $3,500
July 5	Paid the premium on a 1-year insurance policy, $4,200
July 7	Purchased supplies on account from Little Company, $1,000.
July 10	Paid employee salaries, $3,500
July 14	Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance was
	placed on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1.
	Note: Use accounts payable for the balance due.
July 15	Received cash for preparing tax returns for the first half of July, $8,000
July 19	Made payment on account to Lake Company, $500.
July 31	Received cash for preparing tax returns for the last half of July, $9,000
July 31	Declared and paid cash dividends of $600.

Quick Tax Corporation

Quick Tax Corporation

Quick Tax Corporation

Income Statement

Statement of Retained Earnings

Balance Sheet

For the Month Ending July 31

For the Month Ending July 31

July 31

Revenues:

Retained Earnings, July 1

Assets:

Revenue

Add: Net Income

Cash

Subtotal

Supplies

Expenses:

Less: Dividends

Prepaid Insurance

Rent Expense

Retained Earnings, July 31

Equipment

Salaries Expense

Less: Accum. Depr.

Insurance Expense

Total Assets

Supplies Expense

Depreciation Expense

Liabilities:

Income Tax Expense

Accounts Payable

Total Expenses

Income Tax Payable

Total Liabilities

Net Income

Stockholders' Equity:

Common Stock

Retained Earnings

Total Stockholders' Equity

Total Liabilities and

Stockholders' Equity