Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of retained earnings, and balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hello, I need some assistance with the financial statements, specifically the basic income statement, statement of
![A. Kris formed a consulting business, KrisCo Management Consulting in September. Operations will begin
October. The following events occurred during the month of September:
Kris invested $10,000 into the business.
She hired an assistant who will be paid $2,000 per month. The assistant begins work on Oct. 1.
Signed a lease agreement for office space at a cost of $1,000 per month. Paid the first three months in
advance.
1.
2.
3.
The business will move in on October 1.
Borrowed $30,000 from the local bank. The loan bears interest.
Bought $6,000 in office equipment. The equipment will be used for 4 years.
4.
5.
The following events occurred during the month of October:
Performed consulting Job #1 and was paid $500.
Performed consulting Job #2 and billed customer for $400. Bill is due in Nov.
Received an advance payment of $300 on Job #3. Work will begin in November.
Paid assistant $1,000 for the first half of the month's work.
Received utility bills [electric, phone, gas, etc.] for the month of October totaling $250.
Made a payment of $1,200 to the bank. $200 of the payment is to cover October interest on the loan, with
the remainder going to principal.
1.
tibute
2.
3.
4.
5.
6.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45f3e0a4-3f21-4962-8ad5-de454383f96a%2F443e555b-8976-4833-830e-3bc4bb6fcf74%2Fsvjaj7i_processed.png&w=3840&q=75)
Transcribed Image Text:A. Kris formed a consulting business, KrisCo Management Consulting in September. Operations will begin
October. The following events occurred during the month of September:
Kris invested $10,000 into the business.
She hired an assistant who will be paid $2,000 per month. The assistant begins work on Oct. 1.
Signed a lease agreement for office space at a cost of $1,000 per month. Paid the first three months in
advance.
1.
2.
3.
The business will move in on October 1.
Borrowed $30,000 from the local bank. The loan bears interest.
Bought $6,000 in office equipment. The equipment will be used for 4 years.
4.
5.
The following events occurred during the month of October:
Performed consulting Job #1 and was paid $500.
Performed consulting Job #2 and billed customer for $400. Bill is due in Nov.
Received an advance payment of $300 on Job #3. Work will begin in November.
Paid assistant $1,000 for the first half of the month's work.
Received utility bills [electric, phone, gas, etc.] for the month of October totaling $250.
Made a payment of $1,200 to the bank. $200 of the payment is to cover October interest on the loan, with
the remainder going to principal.
1.
tibute
2.
3.
4.
5.
6.
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