The trial balance as of July 31, 2018, for Sara Simon, Registered Dietician, is presented below:

Requirements
1. Prepare the income statement for the month ended July 31, 2018.
2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of retained earnings was $0.
3. Prepare the balance sheet as of July 31, 2018.
4. Calculate the debt ratio as of July 31, 2018.

Transcribed Image Text:

SARA SIMON REGISTERED DIETICIAN Trial Balance July 31, 2018 Balance Credit Account Title Debit $ 38,000 Cash Accounts Receivable 9,000 Office Supplies 2,300 2,400 Prepaid Insurance Equipment 16,000 Accounts Payable $ 3,000 Unearned Revenue 3,912 Notes Payable 31,000 Common Stock 18,000 Dividends 2,800 Service Revenue 17,888 Salaries Expense 1,700 1,100 Rent Expense Utilities Expense 500 Total $ 73,800 $ 73,800