Construct Financial Statements from Transaction Data

Baiman Corporation commences operations at the beginning of January. It provides its services on credit and bills its customers $40,000 for January sales, which are unpaid at month-end. Its employees also earn January wages of $12,000 that are not paid until the first of February. Complete the following statements for the month-end of January.

Income Statement Balance Sheet

Sales . . . . . . . . . . . . . . .$ Cash . . . . . . . . . . . . . . . . $

Wages expense . . . . . .______________ Accounts receivable . . _____________

Net income (loss). . . .$_____________ Total Assets . . . . . . . . . $ _____________

Wages payable . . . . . . . $ _____________

Retained earnings . . . . _____________

Total liabilities & equity $ ____________