Refer to the table for Beverly Entertainment Enterprises in part (1) of Problem 3-9.

Required

1. Prepare a trial balance at October 31, 2012.

2. Prepare an income statement for the month ended October 31, 2012.

Data from Problem 3-9

 

	Atkins Advertising Agency began business on January 2, 2012. The transactions entered into by
	Atkins during its first month of operations are as follows:
a.	Acquired its articles of incorporation from the state and issued 100,000 shares of capital stock
	in exchange for $200,000 in cash.
b.	Purchased an office building for $150,000 in cash. The building is valued at $110,000, and the
	remainder of the value is assigned to the land.
c.	Signed a three-year promissory note at the bank for $125,000.
d.	Purchased office equipment at a cost of $50,000, paying $10,000 down and agreeing to pay
	the remainder in ten days.
e.	Paid wages and salaries of $13,000 for the first half of the month. Office employees are paid
	twice a month.
f.	Paid the balance due on the office equipment.
g.	Sold $24,000 of advertising during the first month. Customers have until the 15th of the following
	month to pay their bills.
h.	Paid wages and salaries of $15,000 for the second half of the month.
i.	Recorded $3,500 in commissions earned by the salespeople during the month. They will be
	paid on the fifth of the following month.