Financial information related to Joshua Tree Interiors for August and September 2010 is as follows:

a. Prepare balance sheets for Joshua Tree Interiors as of August 31 and as of September 30, 2010.b. Determine the amount of net income for September, assuming that no additional capital stock was issued and no dividends were paid during the month.c. Determine the amount of net income for September, assuming that no additional capital stock was issued but dividends of $17,500 were paid during themonth.

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August 31, 2010 $ 40,000 75,000 60,000 September 30, 2010 $ 55,000 90,000 Accounts payable Accounts receivable Capital stock Retained earnings Cash Supplies 60,000 110,000 140,000 20,000