Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Cash $ 8,600 3,800 2,800 1,800 1,300 5,500 2,260 2,700 360 Common stock Dividends Accounts receivable Notes receivable Office supplies Prepaid insurance Equipment Accounts payable Notes payable Unearned revenue $ 12,800 2,300 13,500 800 3,300 Consulting revenue Rental revenue Salaries expense Rent expense Advertising expense Utilities expense 2,300 460 260 Required: 1. Prepare a December income statement for the business. 2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0. 3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December. Cash $ 8,600 3,800 2,800 1,800 1,300 5,500 2,260 2,700 360 Common stock Dividends Accounts receivable Notes receivable Office supplies Prepaid insurance Equipment Accounts payable Notes payable Unearned revenue $ 12,800 2,300 13,500 800 3,300 Consulting revenue Rental revenue Salaries expense Rent expense Advertising expense Utilities expense 2,300 460 260 Required: 1. Prepare a December income statement for the business. 2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0. 3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 35

Transcribed Image Text:Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix
shows the following selected accounts and amounts for the month of December.
Cash
$ 8,600
3,800
2,800
1,800
1,300
5,500
2,260
2,700
Common stock
$ 12,800
Accounts receivable
Notes receivable
Office supplies
Prepaid insurance
Equipment
Accounts payable
Notes payable
Unearned revenue
Dividends
2,300
13,500
Consulting revenue
Rental revenue
Salaries expense
800
Rent expense
Advertising expense
Utilities expense
3,300
2,300
460
260
360
Required:
1. Prepare a December income statement for the business.
2. Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $O.
3. Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
METRIX
Balance Sheet
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