On October 1, Keisha King organized Real Answers, a new

On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner contributed $84,000 cash. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.

Cash . . . . . . . . . . . . . . . . . . . . . . .$11,360

Accounts receivable . . . . . . . . . . 14,000

Office supplies . . . . . . . . . . . . . . . 3,250

Land . . . . . . . . . . . . . . . . . . . . . . . 46,000

Office equipment . . . . . . . . . . . . 18,000

Accounts payable . . . . . . . . . . . . . 8,500

Owner investments . . . . . . . . . . . . 84,000

Cash withdrawals by owner. . . . . . $ 2,000

Consulting fees earned . . . . . . . . . 14,000

Rent expense . . . . . . . . . . . . . . . . . 3,550

Salaries expense . . . . . . . . . . . . . . 7,000

Telephone expense. . . . . . . . . . . . . 760

Miscellaneous expenses . . . . . . . . 580


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