Chapter 1, Problem 3PB

Financial statements

1. Net income: $10,900

Jose Loder established Bronco Consulting on August 1, 20Y1. The effect of each transaction and the balances after each transaction for August follow:

Instructions

1. Prepare an income statement for the month ended August 31, 20Y1.

2. Prepare a statement of stockholders’ equity for the month ended August 31, 20Y1.

3. Prepare a balance sheet as of August 31, 20Y1.

4. (Optional) Prepare a statement of cash flows for the month ending August 31, 20Y1.