The following amounts were taken from the accounting records of

The following amounts were taken from the accounting records of Bontancia Services, Inc., as of August 31, 2011. Bontancia Services began its operations on September 1, 2010.

Capital stock                          $ 23,000

Cash                                           50,000

Dividends                                  13,000

Fees earned                            300,000

Interest expense                        2,500

Land                                         100,000

Miscellaneous expense             7,500

Notes payable                           30,000

Rent expense                            28,000

Salaries expense                       90,000

Taxes expense                          22,000

Utilities expense                       40,000


Instructions

1. Prepare an income statement for the year ending August 31, 2011.

2. Prepare a retained earnings statement for the year ending August 31, 2011.

3. Prepare a balance sheet as of August 31, 2011.

4. Prepare a statement of cash flows for the year ending August 31, 2011.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...