6 200 points On October 1 Keisha King organized Real Answers

6· 2.00 points On October 1, Keisha King organized Real Answers, a new consulting firm; On October 3, the owner contributed $71,805 cash. On October 31, the company\'s records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock 11,000 Cash dividends 21,000 Consulting fees eamed 23,375 Rent expense 46,000 Salaries expense 8,000 Telephone expense $ 2,000 23,000 4,140 9,200 760 580 71,805 Using the above information prepare an October income staterdent for the business. Income Sta tement For Month Ended October 31

Solution

Income Statement for the month ended Oct 31 :

Revenues:
Consulting Fees Earned		$23000
Total Revenues		$23000
Less: Expenses :
Rent	$4140
Salaries	9200
Telephone	760
Miscellaneous	580
Total Expenses		14680
Net Income		$8320
Less: Cash dividends		(2000)
To Retained Earnings		$6320