Financial information related to the corporation of Lady interiors for July and August 2012 is as follows.

a. Prepare balance sheets for Lady Interiors as July 31 and August 31, 2010.b. Determine the amount of net income for August, assuming that no additional capital stock was issued and no dividends were paid during the amount.c. Determine the amount of net income for August, assuming that no additional capital stock was issued, but dividends of $35,000 were paid during themonth.

Transcribed Image Text:

July 31, 2012 August 31, 2012 Accounts payable Accounts receivable Capital stock Cash Retained earnings 5100,000 5 90.000 240,000 200,000 95,000 130,000 20,000 170,000 Supplies 15,000