Use the following information for the Exercises below.
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following accounts and amounts for the month of August.
Cash $ 25,410 Consulting fees earned $ 27,060
Accounts receivable 22,420 Rent expense 9,610
Office supplies 5,320 Salaries expense 5,650
Land 44,050 Telephone expense 940
Office equipment 20,060 Miscellaneous expenses 560
Accounts payable 10,510 Common stock 102,500
Dividends 6,050
Exercise 2-16 Preparing an income statement LO C3, P3
Use the above information to prepare an August income statement for the business.
Exercise 2-17 Preparing a statement of retained earnings LO P3
Use the above information to prepare an August statement of retained earnings for Help Today. (
Hint: Net income for August is $10,300.)
Exercise 2-18 Preparing a balance sheet LO P3
Use the above information to prepare an August 31 balance sheet for Help Today. (
Hint: The ending retained earnings account balance as of August 31 is $4,250.)
