Your assignment is to prepare the income statement and balance sheet for Ram-o-fun International. Use the accounts listed below to construct the statements.

List of Accounts for RAM-O-FUN International

FOR INCOME STATEMENT

Insurance Expenses 40,000

Interest Expenses 14,000

Net Sales 1,100,000

COGS 99,400

Advertising Expense 190,000

Salaries 180,000

Utilities 6,800

FOR BALANCE SHEET

Cash 800,000

Accounts Receivable 130,000

Notes Receivable 45,000

Land 1,000,000

Buildings 1,050,000

Equipment & Vehicles 650,000

Accounts Payable 45,000

Short-Term Notes Payable 10,000

Notes Payable (LongTerm) 105,000

Bonds Payable 40,000

Common Stock 1,975,000

Retained Earnings 1,500,000