Reese Inc., a provider of consulting services, was founded on October 1, 2025. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information.

Instructions 

Using the information, prepare an income statement and retained earnings statement for the month of October 2025 and a balance sheet as of October 31, 2025.

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Accounts payable Interest expense Equipment (net) Salaries and wages expense Bonds payable Unearned service revenue Accounts receivable Cash $3,300 410 48,200 2,500 21,500 4,065 1,300 3,950 Supplies Supplies expense Depreciation expense Service revenue Salaries and wages payable Common stock Interest payable $ 2,460 380 270 20,920 445 9,100 140