The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2004 the

Question:

The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2004 the company had the following account balances:

Land ..................$45,000

Notes payable ............. 33,000

Merchandise inventory ........... 12,480

Buildings ............... 50,000

Cash ................. 10,360

Contributed capital ........... 38,770

Retained earnings, April 30 ........ 46,070

Cost of goods sold ............. 15,050

Sales revenue ................ 26,000

Supplies expense ............. 1,300

Income tax expense ............ 1,060

Wage expense .............. 1,500

Insurance expense .............. 550

Interest expense .............. 900

Required

Prepare an income statement and balance sheet in good form. For each statement, use a three-line heading on the statement that includes

(a) The name of the company

(b) The name of the statement

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...