Using updated general ledger balances previously to prepare the following

Income statement

Statement of retained earnings

Balance Sheet

ACCOUNT DEBIT CREDIT Accounts Payable 35000 Accounts Receivable 27000 Advertisement 200 Cash 212220 Common Stock 200000 Cost of Goods Sold 50000 Equipment 10000 Inventory 15000 Prepaid Rent 3000 Repairs 80 Salary expense 5000 Sales Revenue 90000 Utilities 2500 One Month Transactions Sr Ref Transactions 1 Purchased on credit Merchandise for 65000 2 Sold on credit Merchandise for 90000, cost 50000 3 Paid rent in advance 3000 4 Purchased machine for 10000 with useful life 5 years and no salvage value 6 Salaries paid for the period 5000 7 Utilities paid 2500 8 Tax rate is 15% 9 Collected 70% of the sales 10 Paid on account towards payables 2500 Adjustments A-1 Salaries of 200 remained unpaid A-2 Depreciation to be on SLM method A-3 Rent paid was for 3 month