Chapter 1, Problem 1.27AE

LO 4

(Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume the Giada Coffee Roasters Corp. ended the month of August 2019 with these data:

Payments of cash:
Acquisition of equipment.......	$201,500	Cash balance, August 1,2019....	$ 0
Dividends...............................	2,800	Cash balance, August 31, 2019…..	5,300
Retained earnings		Cash receipts:
August 1, 2019.......................	0	Issuance (sale) of stock to owners...........................	14,900
Retained earnings		Rent expense..............................	1,800
August 31, 2019.....................	5	Common stock...........................	14.900
Utilities expense.........................	5,100	Equipment..................................	201,500
Adjustments to reconcile		Office supplies............................	7,400
net income to net cash		Accounts payable......................	8,800
provided by operations...........	1,400	Service revenue...........................	278,700
Salary expense............................	78,500

Requirement

1. 1. Prepare the income statement and the statement of retained earnings for Giada Coffee Roasters Corp., for the month ended August 31, 2019.