PROBLEM 1-1 (LO4,5) Preparing Financial Statements Following are the asset, liability, and equity items of Dumont...

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PROBLEM 1-1 (LO4,5) Preparing Financial Statements Following are the asset, liability, and equity items of Dumont Inc. at January 31, 2015, after its first month of operations. ASSETS LIABILITIES EQUITY Cash $1,300 Bank Loan $8,000 Share Capital $2,000 Accounts Receivable 2,400 Accounts Payable 1,000 Service Revenue 7,500 Prepaid Expenses 550 Advertising Expense 500 Unused Supplies 750 Commissions Expense 720 Truck 9,000 Insurance Expense 50 Interest Expense 80 Rent Expense 400 Supplies Expense 100 Telephone Expense 150 Wages Expense 2,500 Required: Problems 39 1. Prepare an income statement and statement of changes in equity for Dumont's first month ended January 31, 2015. 2. Prepare a balance sheet at January 31, 2015. PROBLEM 1-1 (LO4,5) Preparing Financial Statements Following are the asset, liability, and equity items of Dumont Inc. at January 31, 2015, after its first month of operations. ASSETS LIABILITIES EQUITY Cash $1,300 Bank Loan $8,000 Share Capital $2,000 Accounts Receivable 2,400 Accounts Payable 1,000 Service Revenue 7,500 Prepaid Expenses 550 Advertising Expense 500 Unused Supplies 750 Commissions Expense 720 Truck 9,000 Insurance Expense 50 Interest Expense 80 Rent Expense 400 Supplies Expense 100 Telephone Expense 150 Wages Expense 2,500 Required: Problems 39 1. Prepare an income statement and statement of changes in equity for Dumont's first month ended January 31, 2015. 2. Prepare a balance sheet at January 31, 2015.