1. The following are all of the accounts of Vita-Mix Company that have a balance at the end of August, the company's second month of operation:

Sales 50,000 Accounts payable 13,800

Rent expense 1,500 Utilities expense 3,000

Office supplies 3,500 Telephone expense 1,500

Cost of Sales 20,000

Salaries expense 15,000 Retained Earnings 3,000

Notes payable 17,250 Common Share Capital 12,150

Accounts receivable $18,500 Machinery 27,500

Cash $5,700

(A) Prepare the Income Statement. (7 marks)

(B) Prepare the Statement of Financial Position (8 marks)