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[The following information applies to the questions displayed below.] An analysis of transactions made during July by NepCo, an Internet service provider, during its first
[The following information applies to the questions displayed below.] |
An analysis of transactions made during July by NepCo, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained. |
Assets | = | Liabilities | + | Stockholders' Equity | ||||||
Cash | Accounts Receivable | Supplies | Equipment | Accounts Payable | Common Stock | Retained Earnings | ||||
(a) | +12,000 | +12,000 | ||||||||
(b) | +835 | 835 | Utilities expense | |||||||
(c) | +6,350 | +6,350 | Service revenue | |||||||
(d) | 6,850 | +12,290 | +5,440 | |||||||
(e) | +1,980 | +1,980 | Service revenue | |||||||
(f) | +940 | +940 | ||||||||
(g) | 4,080 | 4,080 | ||||||||
(h) | 3,640 | 3,640 | Wage expense | |||||||
(i) | 975 | 975 | Rent expense | |||||||
(j) | +1,905 | 1,905 | ||||||||
340 | 4,445 | 940 | 12,290 | 3,135 | 12,000 | 2,880 |
Required: |
2-a. | Prepare an income statement as of July 31. |
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