Preparing an Income Statement, Statement of Stockholders Equity, and Classified Balance Sheet Refer to E3-13. Required: Use

Question:

Preparing an Income Statement, Statement of Stockholders’ Equity, and Classified Balance Sheet

Refer to E3-13.

Required:

Use the balances in the completed T-accounts in E3-13 to respond to the following:

1. Prepare an income statement in good form for the month of March 2011.

2. Prepare a statement of retained earnings for the month of March 2011.

3. Prepare a classified balance sheet in good form as of March 2011.

4. What do you think about the success of this company based on the results of the first month of operations?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...