Assume Island Coffee Roasters Corporation ended the month of August 2019 with these data:

Requirement

1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.

Transcribed Image Text:

Payments of cash: Acquisition of equipment .. Cash balance, August 1, 2019.. Cash balance, August 31, 2019.. Cash receipts: Issuance (sale) of stock to owners Rent expense. Common stock. Equipment.. Office supplies.. Accounts payable . Service revenue... .... $200,000 2,700 $ 6,000 .... Dividends. Retained earnings August 1, 2019. Retained earnings August 31, 2019.. Utilities expense. Adjustments to reconcile net income to net cash provided by operations.. Salary expense. 13,700 1,800 13,700 200,000 7,500 8,900 279,300 5,800 1,400 78,100