Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 2-7A Preparing an income statement, statement of retained earnings, and balance sheet. LO Angela Lopez owns and manages a consulting firm called Metrix, which
Problem 2-7A Preparing an income statement, statement of retained earnings, and balance sheet. LO Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On March 31, Metrix shows the following selected accounts and amounts for the month of March. polnts $ 1,900 $ 6,000 Office supplies Rental revenue Equipment Salaries expense Consulting revenue Cash Utilities expense eBook 3,400 14,000 8,800 900 Advertising expense Prepaid insurance Accounts payable 480 1,400 2,580 2,900 2,400 280 Ask Note payable Accounts receivable Common stock 2,800 3,900 Note receivable Rent expense Unearned revenue 13,200 380 Dividends 2,400 References Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of retained earnings. The Retained Earnings account balance at March 1 was $0. 3. Prepare a March 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started