Requirement #7:Prepare the financial statements for the Quick Tax Corporation as of July 31 in the space below.You will only be preparing the income statement, statement of retained earnings, and the balance sheet.The statement of cash flows is a required financial statement, but is not required for this case study.Quick Tax CorporationQuick Tax CorporationQuick Tax CorporationStatement of Retained EarningsFor the Month Ending July 31Income StatementBalance SheetFor the Month Ending July 31July 31Revenues:Retained Earnings, July 1Assets:RevenueAdd: Net IncomeCashSubtotalExpenses:Rent ExpenseSalaries ExpenseInsurance ExpenseSuppliesPrepaid InsuranceEquipmentLess: Accum. Depr.Less: DividendsRetained Earnings, July 31Total AssetsSupplies ExpenseDepreciation ExpenseIncome Tax ExpenseTotal ExpensesLiabilities:Accounts Payable|Income Tax PayableTotal LiabilitiesNet IncomeStockholders' Equity:Common StockRetained EarningsTotal Stockholders' Equity During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,completed the following transactions.Began business by making a deposit in a company bank account of $60,000, in exchangefor 6,000 shares of $10 par value common stock.July 1July 3Paid the current month's rent, $3,500July 5Paid the premium on a 1-year insurance policy, $4,200July 7Purchased supplies on account from Little Company, $1,000.July 10Paid employee salaries, $3,500July 14Purchased equipment from Lake Company, $10,000. Paid $2,500 down and the balance wasplaced on account. Payments will be $500.00 per month until the equipment is paid. The first payment is due 8/1.Note: Use accounts payable for the balance due.July 15Received cash for preparing tax returns for the first half of July, $8,000July 19Made payment on account to Lake Company, $500.July 31Received cash for preparing tax returns for the last half of July, $9,000July 31Declared and paid cash dividends of S600.

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Answered: Prepare the financial statements for…

Business

Accounting

Prepare the financial statements for the Quick Tax Corporation as of July 31 in the space below.

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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