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 $ 10,200 Common stock $ 16,000 Accounts receivable 4,600 Dividends 3,100 Notes receivable 3,600 Consulting revenue 17,500 Office supplies 2,600 Rental revenue 1,600 Prepaid insurance 2,100 Salaries expense 4,100 Equipment 9,500 Rent expense 3,100 Accounts payable 4,820 Advertising expense 620 Notes payable 3,500 Utilities expense 420 Unearned revenue 520 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 $ 10,200
Common stock $ 16,000
Accounts receivable 4,600
Dividends 3,100
Notes receivable 3,600
Consulting revenue 17,500
Office supplies 2,600
Rental revenue 1,600
Prepaid insurance 2,100
Salaries expense 4,100
Equipment 9,500
Rent expense 3,100
Accounts payable 4,820
Advertising expense 620
Notes payable 3,500
Utilities expense 420
Unearned revenue 520
Required:1. Prepare a December income statement for the business.
2. Prepare a December statement of
3. Prepare a December 31
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
