Chris Darby established Top-Gun Computer Services on January 1, 2007. The effect of each transaction and the balances after each transaction for January are shown in the integrated financial statement framework at the top of the following page.

Instructions
1. Prepare an income statement for the month ended January 31, 2007.
2. Prepare a retained earnings statement for the month ended January 31, 2007.
3. Prepare a balance sheet as of January 31, 2007.
4. Prepare a statement of cash flows for the month ended January 31,2007.

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Balance Sheet Statement of Cash Flows Income Statement Assets Llabilities+ + Stocholders Equity Capital Retained Land Payable + Stock + Earnings Notes 25,000 15,000 40,000 -2,500 37,500 10,000 47,500 -30,000 17,500 -1,650 15,850 -3,500 12.350 -1,500 10,850 a. Investment b. Fees earned Balances C. Rent expense Balances 25,000 15,000 b. 15,000 2,500 | с. 12,500 25,000 25,000 d, Issued notes payable 10,000 Balances 10,000 25,000 12,500 e. Purchased land 30,000 30,000 Balances 10,000 25,000 12,500 -1,650 f 10,850 f. Paid expenses Balances 30,000 10,000 25,000 g. Paid salary expense -3,500g Balances 7,350 -1,500 5,850 30,000 10,000 25,000 l. Paid dividends Balances, Jan. 31 30,000 10,000 25,000 Statement of Cash Flows income Statement b. 15,000 Fees earned C 2,500 Rent expense f. -950 Auto expense f. -700 Misc. expense a. Financing b. Operating c. Operating d. Financing e. Investing f. Operating g. Operating L. Financing 25,000 15,000 10.00INTEGRATED FINANCIAL 30.00STATEMENT FRAMEWORK9350 sesey epese 700 Misexpense -1,650 3,500 1.500 10,850 7,350 Net income Increase in cash