Chapter 4, Problem 4.1TP

1.

To determine

Income Statement: Income Statement is a financial statement that is prepared by all the companies by enumerating all the expenses and revenues to calculate the resulting difference of Net Profit or Net Loss.

Retained Earnings Statement: Retained Earnings Statement is the statement showing the balance of retained earnings left at the end of the period after including the net profit for the period and distributing the dividend to the shareholders.

Balance Sheet: A Balance Sheet is a statement showing the position of the assets, liabilities and the owner’s equity at the end of the financial year.

To prepare: Income statement of W Service Company for the month ended August 31, 2018.

2.

To determine

To prepare: A classified balance sheet at August 31, 2018 of W Service Company.

3.

To determine

To State: Whether Ms. W summer work was successful