Homework $1($Chapter $1)$

$11$

Exercise $1-6($Algo$)$ Prepare an income statement $($LO$1-3)$

$5$ points

References

Below are the account balances for Cowboy Law Firm at the end of December.

Required:

Use only the appropriate accounts to prepare an income statement.

$\backslash$table$[[$COWBOY LAW FIRM,$],[$Income Statement,,$],[$For the Period Ended December $31,,],[$Accounts payable,,$],[$Service revenue,,$],[$Expenses:$,,],[$Salaries expense,,$],[$Utilities expense,,$],[$Supplies$,,],[$Cash$,,],[$Total expenses,,$],[$Net income,,$]]$How to solve

Exercise $1-7($Algo$)$ Prepare a statement of stockholders' equity $($LO$1-3)$

At the beginning of the year $($January $1),$ Cowpoke Drilling has $$10,000$ of common stock outstanding and retained earnings of $$7,800.$ During the year, Cowpoke reports net income of $$8,100$ and pays dividends of $$2,800.$ In addition, Cowpoke issues additional common stock for $$7,600.$

eBook

Required:

Hint

Prepare the statement of stockholders' equity at the end of the year $($December $31).$

Print

erences

$\backslash$table$[[$COWPOKE DRILLING$],[$Statement of Stockholders' Equity$],[$For the Year Ended December $31],[,,\backslash$table$[[$Common$],[$Stock$]],\backslash$table$[[$Retained$],[$Earnings$]],\backslash$table$[[$Total$],[$Stockholders$\text{'}],[$Equity$]]],[$Beginning balance,$-,,,],[?,,,,],[?,+,,,],[,,,,],[$Ending balance,$$,$$$0,$$ $0,$$ $0]]$