Assume an Earl Copy Center ended the month of July 2010 with these data:

Requirement
Prepare the income statement and the statement of retained earnings of Earl Copy Center, Inc., for the month ended July 31,2010.

Transcribed Image Text:

Payments of cash: Acquisition of equipmen. $420,000 Cash balance, June 30, 20100 Dividends June 30, 2010 July 31, 2010 Cash balance, July 31, 201 Cash receipts: 4,800 10,900 Retained earnings Retained earnings Utilities expense Issuance (sale) of stock 69,500 2,200 69,500 Equipment420,000 14,800 17,000 543,200 to owners Rent expense Common stock 10,000 Adjustments to reconcile net income to net cash Office su provided by ope 2,200 167,000 Accounts payable Service reve rati Salary expense