On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses.Service revenue $75,000 Rent expense $10,600Postage expense 1,500 Salaries expense 24,000Legal fees expense 2,400 Supplies expense 14,500In addition, the balance of common stock at the beginning of the year was $200,000, and the balance of retained earnings was $32,000. During the year, the company issued additional shares of common stock for $25,000 and paid dividends of $10,000. Required: 1. Prepare an income statement. 2. Prepare a statement of stockholders’ equity.
On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses.Service revenue $75,000 Rent expense $10,600Postage expense 1,500 Salaries expense 24,000Legal fees expense 2,400 Supplies expense 14,500In addition, the balance of common stock at the beginning of the year was $200,000, and the balance of retained earnings was $32,000. During the year, the company issued additional shares of common stock for $25,000 and paid dividends of $10,000. Required: 1. Prepare an income statement. 2. Prepare a statement of stockholders’ equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses.
Service revenue $75,000 Rent expense $10,600
Postage expense 1,500 Salaries expense 24,000
Legal fees expense 2,400 Supplies expense 14,500
In addition, the balance of common stock at the beginning of the year was $200,000, and the balance of
Required:
1. Prepare an income statement.
2. Prepare a statement of
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