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Using the following​ information, complete the income​statement, statement of retained​ earnings, and balance sheet for

LUV Painting for the month of March 2018. The business began operations on March ​1,2018.

Accounts Receivable $1,800
Salaries Expense $1,300
Accounts Payable 1,400
Service Revenue 10,500
Cash 23,500
Office Supplies 1,900
Stock issued during March 40,000
Truck 18,680
Dividends paid during March 4,500
Utilities Expense 220

Respuesta :

Answer:

Gross profit = $8980

Retained earning (end) = $4480

Explanation:

                                                LUV

                                     Income Statement

                                For the m/o march 1,2018

                                                                                                                 $

Service revenue                                                                               = 10500

less: Operating expense

          Salaries expense     1300

          Utilities expense       220

                                                                                                          = (1520)

                Gross profit                                                                        8980

                                                LUV

                                         Balance sheet

                                       as on march 1,2018    

ASSETS:                         $

Current Asset:

Cash                           = 23500

Account receivable    =  1800

Office supplies            = 1900

                                      27200(a)

Fixed Asset:

Truck                           = 18680(b)

Total Assets   (a+b)     = 45880

LIABILITIES:

Account payable       =  1400 (c)  

STOCKHOLDERS EQUITY:  

Issued stocks             = 40000

Add: income              =  8980

less: Paid dividend    = (4500)

                                      44480(d)

Total Stock holders asset and liabilities (c+d) = 45880.

                                              LUV

                             Statement of retained Earning

                                       as on march 1,2018

                                                $

Retained earning (open) =    0

Add: Net income             =  8980

less: Dividend                 =  (4500)

Retained earning (end)      4480

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