GHICo. had the following transactions during the month:

a. shareholder deposits $50,000 into GHI Co.'s bank account in exchange for common stock

b. GHI Co. received $5,000 from customers for sales; services have been provided

c. GHI Co. received $2,500 from customers for sales; services have not been provided

d. GHI Co. paid monthly expenses; $2,000 for rent and $1,000 for wages

e. GHI Co. paid dividends of $500

f. GHI Co. had sales to customers on account (credt) $5,000; no cash was paid and customers will be billed

g. customers from transaction (f) received their bill and paid GHI$1,000GHI Co.

Required:

Prepare GHI's Income Statement from the data above. (Cash Method)

Prepare a Statement of Retained Earnings from the data above. (Cash Method)

Prepare a Balance Sheet for GHI Co. from the above data. (Cash Method)

Answer rating: 100% (QA)

To prepare GHI Cos financial statements Income Statement Statement of Retained Earnings and Balance Sheet using the cash method we need to analyze the ... View the full answer