Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Transcribed Image Text:A. Kris formed a consulting business, KrisCo Management Consulting in September. Operations will begin
October. The following events occurred during the month of September:
Kris invested $10,000 into the business.
She hired an assistant who will be paid $2,000 per month. The assistant begins work on Oct. 1.
Signed a lease agreement for office space at a cost of $1,000 per month. Paid the first three months in
advance.
1.
2.
3.
The business will move in on October 1.
Borrowed $30,000 from the local bank. The loan bears interest.
Bought $6,000 in office equipment. The equipment will be used for 4 years.
4.
5.
The following events occurred during the month of October:
Performed consulting Job #1 and was paid $500.
Performed consulting Job #2 and billed customer for $400. Bill is due in Nov.
Received an advance payment of $300 on Job #3. Work will begin in November.
Paid assistant $1,000 for the first half of the month's work.
Received utility bills [electric, phone, gas, etc.] for the month of October totaling $250.
Made a payment of $1,200 to the bank. $200 of the payment is to cover October interest on the loan, with
the remainder going to principal.
1.
tibute
2.
3.
4.
5.
6.
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
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![A. Kris formed a consulting business, KrisCo Management Consulting in September. Operations will begin
October. The following events occurred during the month of September:
Kris invested $10,000 into the business.
She hired an assistant who will be paid $2,000 per month. The assistant begins work on Oct. 1.
Signed a lease agreement for office space at a cost of $1,000 per month. Paid the first three months in
advance.
1.
2.
3.
The business will move in on October 1.
Borrowed $30,000 from the local bank. The loan bears interest.
Bought $6,000 in office equipment. The equipment will be used for 4 years.
4.
5.
The following events occurred during the month of October:
Performed consulting Job #1 and was paid $500.
Performed consulting Job #2 and billed customer for $400. Bill is due in Nov.
Received an advance payment of $300 on Job #3. Work will begin in November.
Paid assistant $1,000 for the first half of the month's work.
Received utility bills [electric, phone, gas, etc.] for the month of October totaling $250.
Made a payment of $1,200 to the bank. $200 of the payment is to cover October interest on the loan, with
the remainder going to principal.
1.
tibute
2.
3.
4.
5.
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