Flex Motors shows the following account balances on March 31, 2010.
Cash ..............................................................$ 16,450
Accounts payable ...............................................8,230
Unearned royalty fees ..........................................5,000
Selling expenses ................................................. 45,000
Dividends declared .............................................3,500
Interest payable ...................................................6,000
Administrative expenses ...................................... 25,000
Accumulated depreciation-Buildings ..................... 56,000
Cost of goods sold ............................................. 135,000
Depreciation expense........................................... 14,000
Common shares ................................................250,000
Retained earnings ............................................. 55,720
Motor revenues ............................................... 325,000
Buildings ...................................................... 450,000
Accounts receivable ........................................ 17,000
Required:
(a) Prepare an income statement for the month ending March 31, 2010. Ignore income taxes.
(b) Prepare a statement of retained earnings for the month ending March 31, 2010.
(c) Prepare a balance sheet as at March 31, 2010.