Question 1 - 8

Using the information given, complete following financial statements for August and September 2014.

ABC s

tarted its business on August 1, 2014.

August					September
Investment by stockholders			70		Investment by stockholders			60
(Cash investment)					(Cash investment)
Revenue			130		Revenue			90
(Out of 130 revenue, 30 is sales on credit.)					(Out of 90 revenue, 20 is sales on credit. )
					(25 of cash for credit sales made in August is collected.)
Expense			90		Expense			100
(Our of 90 expense, 20 is purchase on credit.)					(Out of 100 expense, 30 is purchase on credit.)
					(20 of cash for credit purchase made in August is paid.)
Dividends			20		Dividends			0
(Dividens are declared and paid.)					(Dividens are declared and paid.)
ABC					ABC
Income Statement					Income Statement
ABC					ABC
Retained earnings statement					Retained earnings statement
ABC					ABC
Balance Sheet					Balance Sheet
Assets					Assets
Liabilities and Stockholders' Equity					Liabilities and Stockholders' Equity
ABC					ABC
Statement of Cash Flows					Statement of Cash Flows
Net increase (decrease) in cash					Net increase (decrease) in cash
Cash at the beginning of the period					Cash at the beginning of the period
Cash at the end of the period					Cash at the end of the period