Question

construct an income statement and balance sheet for
the first month of operation, given the following information:
	Sales			$104,000.00
	Collections			$77,000.00
	Purchases (paid for half)			$60,000.00
	Ending inventory			$57,000.00
	Equipment Depreciation			$18,000.00
	Vehicle Depreciation			$2,000.00
	Heat (due next month)			$450.00
	Electricity			$325.00
	Telephone			$230.00
	Advertising			$1,200.00
	Salaries			$15,500.00
	Payroll Tax Expense			$1,700.00
	Office Supplies			$200.00
	Insurance (due next month)			$1,250.00
	Loan payment			$3,500.00
	principal			$1,500.00
	interest			$2,000.00
	Legal fees (due next month)			$500.00
	Accounting			$250.00
	Vehicle Expense			$700.00
	Repairs & Maintenance			$1,500.00
	Owner Draw			$3,000.00

Answer 1

I have prepared the income statement on the basis of available information. I could not complete the balance sheet due to lack of data points such as owners equity, borrowings, cost of vehicles and equipment , cash balance at the beginning.