Financial information related to Oak Tree Interiors for October and November 2012 is as follows:

a. Prepare balance sheets for Oak Tree Interiors as of October 31 and as of November 30, 2012.
b. Determine the amount of net income for November, assuming that no additional capital stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for November, assuming that no additional capital stock was issued but dividends of $20,000 were paid during themonth.

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October 31, 2012 40,000 75,000 60,000 November 30, 2012 65,000 118,000 60,000 Accounts payable Accounts receivable Capital stock Retained earnings Cash Supplies 110,000 15,000 140,000 20,000