The following amounts were taken from the accounting records of Rainbow Consulting
The following amounts were taken from the accounting records of Rainbow Consulting Services, Inc., as of July 31, 2007. Rainbow Consulting Services began its operations on August 1, 2006.
Capital stock ............ $ 20,000
Cash ............... 79,000
Dividends ............. 50,000
Fees earned .............. 676,600
Interest expense ........... 9,600
Land ................ 251,000
Miscellaneous expense ........ 15,000
Notes payable ............. 80,000
Rent expense ............ 72,000
Salaries expense ............. 160,000
Taxes expense .............. 60,000
Utilities expense ........... 80,000
Instructions
1. Prepare an income statement for the year ending July 31, 2007.
2. Prepare a retained earnings statement for the year ending July 31, 2007.
3. Prepare a balance sheet as of July 31, 2007.
4. Prepare a statement of cash flows for the year ending July 31, 2007.

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