After its second year of operations, the following amounts were taken from the accounting records of Bontancia

Question:

After its second year of operations, the following amounts were taken from the accounting records of Bontancia Services, Inc., as of August 31, 2012. Bontancia Services began its operations on September 1, 2010 (see Problem 2-3).
Capital stock $ 55,000
Cash ?
Dividends 25,000
Fees earned 400,000
Interest expense 3,000
Land 240,000
Miscellaneous expense 11,000
Notes payable 38,000
Rent expense 36,000
Salaries expense 110,000
Taxes expense 28,000
Utilities expense 52,000
Instructions
1. Prepare an income statement for the year ending August 31, 2012.
2. Prepare a retained earnings statement for the year ending August 31, 2012. (Note: The retained earnings at September 1, 2011, was $97,000.)
3. Prepare a as of August 31, 2012.
4. Prepare a statement of cash flows for the year ending August 31, 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...