Prepare a balance sheet as of October 31, 2022. (List assets in order of liquidity.) METLOCK INC. Balance Sheet Assets $ Liabilities and Stockholders' Equity $ %24 24 %24 METLOCK INC. Income Statement For the Month Ended October 31, 2022 Revenues Service Revenue 20500 Expenses Interest Expense -370 Salarles and Wages Expense -2900 Supplles Expense -450 Depreclation Expense -240 Total Expenses 3960 Net Income / (Loss) 16540 eTextbook and Media List of Accounts (a2) Your answer is correct. Prepare a retained eamings statement for the month of October 2022. METLOCK INC. Retained Earnings Statement For the Month Ended October 31, 2022 Retalned Earnings, October 1 Add Net Income / (Loss) 16540 Retalned Earnings, October 31 16540 %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Metlock Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information.

Accounts payable
  $ 4,200  
Supplies
  $ 2,560
Interest expense
  370  
Supplies expense
  450
Equipment (net)
  49,000  
Depreciation expense
  240
Salaries and wages expense
  2,900  
Service revenue
  20,500
Bonds payable
  21,600  
Salaries and wages payable
  520
Unearned service revenue
  4,110   Common stock   9,600
Accounts receivable   1,200   Interest payable   140
Cash   3,950        


Using the information, answer the following questions.

Prepare a balance sheet as of October 31, 2022. (List assets in order of liquidity.)
METLOCK INC.
Balance Sheet
Assets
$
Liabilities and Stockholders' Equity
$
%24
24
%24
Transcribed Image Text:Prepare a balance sheet as of October 31, 2022. (List assets in order of liquidity.) METLOCK INC. Balance Sheet Assets $ Liabilities and Stockholders' Equity $ %24 24 %24
METLOCK INC.
Income Statement
For the Month Ended October 31, 2022
Revenues
Service Revenue
20500
Expenses
Interest Expense
-370
Salarles and Wages Expense
-2900
Supplles Expense
-450
Depreclation Expense
-240
Total Expenses
3960
Net Income / (Loss)
16540
eTextbook and Media
List of Accounts
(a2)
Your answer is correct.
Prepare a retained eamings statement for the month of October 2022.
METLOCK INC.
Retained Earnings Statement
For the Month Ended October 31, 2022
Retalned Earnings, October 1
Add
Net Income / (Loss)
16540
Retalned Earnings, October 31
16540
%24
Transcribed Image Text:METLOCK INC. Income Statement For the Month Ended October 31, 2022 Revenues Service Revenue 20500 Expenses Interest Expense -370 Salarles and Wages Expense -2900 Supplles Expense -450 Depreclation Expense -240 Total Expenses 3960 Net Income / (Loss) 16540 eTextbook and Media List of Accounts (a2) Your answer is correct. Prepare a retained eamings statement for the month of October 2022. METLOCK INC. Retained Earnings Statement For the Month Ended October 31, 2022 Retalned Earnings, October 1 Add Net Income / (Loss) 16540 Retalned Earnings, October 31 16540 %24
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