E138B Constructan income statement and a statement of retain

E1-38B: Constructan income statement and a statement of retained earnings.

Assume Earl Coffee Roaster Corporation ended the month of august 2016 with these data:

Prepare the income statement and the statement of retained earnings of earl coffee roasters corporation for the month ended august 31, 2016.

Payments of cash: Acquisition of equipment.. $3202 100 ,....s sale, of stock 8.000 Retained earnings Retained earnings Utilities expenseim. \" Dividendsw.wanersi August 1, 2016.... August 31, 2016 bafance, August 31.,2016. 5,300 to owners. 24,600 : 24,600 Office supplies7300 270,800 cash receipts: ent s900 Common stock Adjustments to reconcile net income to net cash provided by operations.1,500Accounts payable m8,800 Salary expense..78 78,700 Service revertut

Solution

Answer

Income:

Service Revenue

270800

Expenses:

Utilities expenses

5900

Salary Expense

78700

Rent Expense

1900

Total Expense

86500

Net Income [270800 – 86500]

184300

Opening balance Aug 1 2016

0

Add: Net Income [calculated above]

184300

Less: Dividends paid [given]

3000

Closing balance Aug 31 2016 [0 + 184300 – 3000]

181300

Income:
Service Revenue	270800
Expenses:
Utilities expenses	5900
Salary Expense	78700
Rent Expense	1900
Total Expense	86500
Net Income [270800 – 86500]	184300