Lawson Consulting had the following accounts and amounts on December 31. Cash $ 5,000 Dividends $ 1,500 Accounts receivable 4,500 Services revenue 12,000 Equipment 6,500 Rent expense 2,000 Accounts payable 3,000 Wages expense 6,000 Common stock 10,500 1.Use the above information to prepare a December income statement for the business. 2.Use the above information to prepare a December statement of retained earnings for Lawson Consulting. The Retained Earnings account balance at December 1 was $0. Hint: Net income for December is $4,000.
Lawson Consulting had the following accounts and amounts on December 31. Cash $ 5,000 Dividends $ 1,500 Accounts receivable 4,500 Services revenue 12,000 Equipment 6,500 Rent expense 2,000 Accounts payable 3,000 Wages expense 6,000 Common stock 10,500 1.Use the above information to prepare a December income statement for the business. 2.Use the above information to prepare a December statement of retained earnings for Lawson Consulting. The Retained Earnings account balance at December 1 was $0. Hint: Net income for December is $4,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lawson Consulting had the following accounts and amounts on December 31.
| Cash | $ 5,000 | Dividends | $ 1,500 |
| 4,500 | Services revenue | 12,000 | |
| Equipment | 6,500 | Rent expense | 2,000 |
| Accounts payable | 3,000 | Wages expense | 6,000 |
| Common stock | 10,500 |
1.Use the above information to prepare a December income statement for the business.
2.Use the above information to prepare a December statement of
Transcribed Image Text:LAWSON CONSULTING
Income Statement
$
0
0
Transcribed Image Text:LAWSON CONSULTING
Statement of Retained Earnings
$
0
0
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