Reference no: EM132542302

Question - Preparing Financial Statements

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

Dec. 1 Sanyu Sony transferred $64,000 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock.

Dec. 2 The company rented office space and paid $1,900 cash for the December rent.

Dec. 3 The company purchased $13,500 of electrical equipment by paying $5,300 cash and agreeing to pay the $8,200 balance in 30 days.

Dec. 5 The company purchased office supplies by paying $900 cash.

Dec. 6 The company completed electrical work and immediately collected $1,400 cash for these services.

Dec. 8 The company purchased $2,810 of office equipment on credit.

Dec. 15 The company completed electrical work on credit in the amount of $6,500.

Dec. 18 The company purchased $500 of office supplies on credit.

Dec. 20 The company paid $2,810 cash for the office equipment purchased on December 8.

Dec. 24 The company billed a client $800 for electrical work completed; the balance is due in 30 days.

Dec. 28 The company received $6,500 cash for the work completed on December 15.

Dec. 29 The company paid the assistant's salary of $1,500 cash for this month.

Dec. 30 The company paid $550 cash for this month's utility bill.

Dec. 31 The company paid $950 cash in dividends to the owner (sole shareholder).

Required -

1. Prepare the income statement for the current month.

2. Prepare the statement of retained earnings for the current month.

3. Prepare the balance sheet as of the end of the month.