Question

From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1, of the current year, Garza Décor Inc. had a beginning retained earnings of $50,000. On November 30, records for Garza Décor Inc. showed the following items and amounts.

Cash	$21,200	Revenue	$34,000
Accounts receivable	19,000	Telephone Expense	250
Office Furnishings	40,000	Rent Expense	9,600
Accounts Payable	12,000	Salaries Expense	4,200
Notes Payable (L/T)	4,250	Dividends	6,000

Answer 1

Answer to Question:

Income Statement
Particulars	Amount($)	Amount($)
Revenues	34000
Total Revenue(a)		34000
Expenses:
Telephone Expenses	250
Rent Expenses	9600
Salaries Expenses	4200
Total Expenes(b)		14050
Net Profit/ (Losses)(a-b)		19,950

GARZA DÉCOR INC.
Statement of Retained Earnings
For the month ended Nov 30
Particulars	Amount($)
Retained Earning at the beginning of the period	50000
Add/(Less): Net Income/(Losses)	19,950
	69,950
Less: Dividend	(6,000)
Retained Earning at the end of the period	63,950

Balance Sheet as on Nov 30:

Assets	Amount($)	Amount($)	Liabilities and Stockholder's Equity	Amount($)	Amount($)
Current Assets
Cash	21,200.00
Accounts Receivable	19,000.00		Current Liabilities
Office Furnishing	40,000.00		Accounts Payable	12,000.00
					12,000.00
Total Current Assets		80,200.00	Long term Debt
			Note Payable		4,250.00
			Total Liabilities		16,250.00
			Stockholder's Equity
			Retained Earning	63,950.00
					63,950.00
Total Assets		80,200.00	Total Liabilities and Stockholders Equity		80,200.00