Prepare an income statement

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Reference no: EM13860910

Problem: Nguyen & Company had the following account balances available:

1783_Nguyen-Company.jpg

Required:

a. Using the accounting framework above, record each of the following transactions/events:

March 1

Services previously sold in advance of $300 were performed.

March 1

Purchased equipment for $11,360; management expects it will be useful for 4 years at which time it should be worth $800.

March 1

Performed $4,000 of consulting services for customers; sent bill.

March 1

Borrowed $2,600 on a note payable.

March 12

Paid advertising of $640.

March 18

Purchased supplies of $130 on account.

March 20

Received $600 from customers on account.

March 23

Paid utility bill of $150.

March 30

Paid employee payrollof $1,400.

March 30

Supplies on hand reported at $190.

March 30

Insurance of $150 expired.

b. Use the resulting accounting framework to prepare an income statement, statement of retained earnings and a balance sheet for the company for the month.

Reference no: EM13860910

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