Below are the accounts of Collegiate Painters, Inc. The company has just completed its first year of operations ended September 30, 2011.

REQUIRED
1. Prepare the income statement, statement of retained earnings, and balance sheet for Collegiate Painters.
2. Why would the owners of Collegiate Painters set their business up as a corporation and not a partnership?

Transcribed Image Text:

Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Equipment Rental Expense Income Taxes Expense $10,500 13,200 Income Taxes Payable Marketing Expense Painting Service Revenue Salaries Expense 2,600 2,000 1,000Salaries Payable 4,700 1,300 3,000 3,000 1,500 78,800 56,000 700 400 7,200 4,100 Supplies Truck Rent Expense Utilities Expense