Jesse Duncan established Bear Computer Services on August 1, 2013. The effect of each transaction and the balances after each transaction for August are shown below in the integrated financial statement framework.

Instruction

1. Prepare an income statement for the month ended August 31, 2013.

2. Prepare a retained earnings statement for the month ended August 31, 2013.

3. Prepare a balance sheet as of August 31, 2013.

4. Prepare a statement of cash flows for the month ended August 31, 2013.

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Balance Sheet - Liablitles Stockholders Equity Notes Capital Retained Cash + Land Payable Stock Earnings Assets Statement of Cash Flows Income Statement a. Investment b. Fees earned Balances c. Rent expense Balances 25,000 27,000 52,000 -2,500 49,500 d. Issued notes payable 10,000 59,500 -40,000 19,500 -1,900 17,600 g. Paid salary expense 4,600 13,000 -3,000 Balances, Aug. 31 10,000 25,000 27,000b 27,000 -2,500 C 24,500 25,000 25,000 10,000 Balances e Purchased land Balances f Paid expenses Balances 10,000 25,000 24,500 40,000 40,000 10,000 24,500 -1,900 f 22,600 -4,6009 18,000 -3,000 15,000 25,000 40,000 10,000 25,000 Balances 40,000 10,000 25,000 h. Paid dividends 40,000 10,000 25,000 Statement of Cash Flows Income Statement . Financing b. Operating Operating . Financing Investing Operating . Operating h. Financing 25,000 27,000 -2,500 10,000 -40,000 -1,900 -4,600 -3,000 10,000 b. Fees earned c. Rent expense f Auto expense f Misc. expense 27,000 -2,500 -1,200 700 q. Salary expense 4,600 18,000 Net income Increase in cash