The company received 50% receivables. The expenses for the current month: salaries 8000$, wages 10000$, rent of the production area 1500$, trade area 800$, utilities for the trade area 200$, production area 500$. Used in the production all the raw materials, was prepared a readymade production, and sold 80% of it with 50% mark-up. Customers paid 20% in cash. Depreciation expenses for car 300$(car is used for admin needs) per month, for equipment 400$. Company recognized 30% of unearned revenue for current month. Tax from sales is 6%. Owner withdrawn 3000$ for his needs. All the expenses and taxes are paid out at the end of the month.

a) Prepare journal entries (7 points)

b) Prepare Income statement from the results of transactions (5 points)

c) Prepare Balance sheet (5 points)

A A L E Raw materials $40 000,00 Unearned revenue $60 000,00 Capital $120 000,00 Ready-made production $10 000,00 Profit $2 000,00 AR $12 000,00 Car $10 000,00 Equipment $30 000,00 Cash $ 80 000,00 Total: $182 000.00 Total: $182 000.00