Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Victoria Rivera owns and manages a consulting firm called Prisek, which began operations on July 1. On July 31, the company's records show the following
Victoria Rivera owns and manages a consulting firm called Prisek, which began operations on July 1. On July 31, the company's records show the following selected accounts and amounts for the month of July. 121LT Equipment.............$12,000 Salaries expense ....... 9,000 Consulting revenue ..... 36,000 Cash... 24,000 Utilities expense... 600 Note payable .......... 7,200 Accounts receivable........$10,500 Common stock. 34,800 Dividends 6,000 Office supplies... 4,500 Rental revenue... 1,500 Advertising expense.. 1,200 Prepaid insurance.. Accounts payable....... Note receivable ...... Rent expense ......... Unearned revenue...... $3,000 3,900 7,500 6,000 900 Required 1. Prepare a July income statement for the business. 2. Prepare a July statement of retained earnings. The Retained Earnings account balance at July 1 was $0, and the owner invested $34,800 cash in the company on July 2 in exchange for common stock. 3. Prepare a July 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