Wendy Dwyer established Outlaw Computer Services on January 1, 2011. The effect of each transaction and the balances after each transaction for January are shown below in the integrated financial statement framework.Instructions1. Prepare an income statement for the month ended January 31, 2011.2. Prepare a retained earnings statement for the month ended January 31,2011.3. Prepare a balance sheet as of January 31, 2011.4. Prepare a statement of cash flows for the month ended January 31,2011.

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Balance Sheet Stockholders' Equity Statement of Cash Flows Asset Liabilities Income Statement Notes Capital Stock Retained Cash Land Payable Earnings a. Investment 30,000 30,000 b. Fees earned 22,000 22,000 Balances 52,000 30,000 22,000 c. Rent expense -2,500 -2,500 C. Balances 49,500 30,000 19,500 d. Issued notes payable 10,000 10,000 59,500 Balances 10,000 30,000 19,500 e. Purchased land -40,000 40,000 Balances 40,000 19,500 19,500 10,000 30,000 f. Paid expenses -1,900 -1,900 Balances 40,000 10,000 17,600 30,000 17,600 g. Paid salary expense -3,600 -3,600 Balances 14,000 10,000 30,000 14,000 40,000 h. Paid dividends -2,000 -2,000 Balances, Jan. 31 10,000 12,000 40,000 30,000 12,000 Statement of Cash Flows Income Statement a. Financing b. Fees eamed 30,000 22,000 c. Rent expense f. Auto expense E. Misc. expense g Salary expense b. Operating 22,000 -2,500 c. Operating -2,500 -1,200 d. Financing 10,000 -700 E, Investing F Operating g Operating -40,000 -3,600 -1,900 Net income 14,000 -3,600 h. Financing -2,000 Increase in cash 12,000