Kay Larsh established Kodiak Architectural Services on October 1, 2007. The effect of each transaction and the balances after each transaction for October 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 October 31, 2007.
2. Prepare a retained earnings statement for the month ended October 31, 2007.
3. Prepare a balance sheet as of October 31, 2007.
4. Prepare a statement of cash flows for the month ended October 31,2007.

Balance Sheet Statement of Cash Flows Income Statement Assets Liabilities+ Stockholders Equity Notes Capital Retained a. Investment b. Fees earned Balances c. Rent expense Balances Cash Land Payable StockEarnings 20,000 12,800 32,800 2,000 30,800 18,000 48,800 20,000 12,800 b 12,800 -2,000 | . 10,800 20,000 20,000 d. Issued note payable 18,000 Balances 18,000 20,000 10,800 e. Purchased land 27,000 27,000 -27,000 Balances 21,800 -1,500 20,300 -2,750 17,550 -1,500 16,050 18,000 20,000 10,800 -1,500 f 9,300 -2,7509 f. Paid expenses Balances 27,000 18,000 20,000 g. Paid salary expense Balances 27,000 18,000 20,000 6,550 -1,500 5,050 i. Paid dividends Balances, Oct. 31 27,000 18,000 20,000 Statement of Cash Flows Income Statement a. Financing b. Operating c. Operating d. Financing e. Investing f. Operating g. Operating i. Financing b. 12,800 Fees earned C -2,000 Rent expense f. -1,000 Auto expense f. -500 Misc. expense 20,000 12,800 1800INTEGRATED FINANCIAL | STATEMENT FRAMEWORK 500 Mis. expense 27,000 1,500 -2,750 g. 2.750 Salary expense 6,550 Net income Increase in cash 6,050