Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December...
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Accounting
Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December.
Cash
$ 10,200
Common stock
$ 16,000
Accounts receivable
4,600
Dividends
3,100
Notes receivable
3,600
Consulting revenue
17,500
Office supplies
2,600
Rental revenue
1,600
Prepaid insurance
2,100
Salaries expense
4,100
Equipment
9,500
Rent expense
3,100
Accounts payable
4,820
Advertising expense
620
Notes payable
3,500
Utilities expense
420
Unearned revenue
520
Required:
Prepare a December income statement for the business.
Prepare a December statement of retained earnings. The Retained Earnings account balance at December 1 was $0.
Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.
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