Reference no: EM131974075

Problem

Sanyu Sony started a new business and completed these transactions during December.

Dec. 1 Sanyu Sony transferred $67,900 cash from a personal savings account to a checking account in the name of Sony Electric.

2 The company rented office space and paid $1,800 cash for the December rent.

3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing to pay the $8,200 balance in 30 days.

5 The company purchased office supplies by paying $700 cash.

6 The company completed electrical work and immediately collected $2,000 cash for these services.

8 The company purchased $2,510 of office equipment on credit.

15 The company completed electrical work on credit in the amount of $6,400.

18 The company purchased $480 of office supplies on credit.

20 The company paid $2,510 cash for the office equipment purchased on December 8.

24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.

28 The company received $6,400 cash for the work completed on December 15.

29 The company paid the assistant's salary of $1,600 cash for this month.

30 The company paid $570 cash for this month's utility bill.

31 Sanyu Sony withdrew $970 cash from the company for personal use.

1. Prepare an income statement for the current month.

2. Prepare a statement of owner's equity for the current month.

3. Prepare a statement of cash flows for the current month. (Cash outflows should be indicated with a minus sign.)

4. Prepare a balance sheet as of the end of the month.