Objective : Construct an income statement and a statement of retained earnings.
Assume Office Plus Copy Center, Inc. ended the month of May 2014 with these data:
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Payments of cash:
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Acquisition of equipment
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$402,700
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Cash balance, May 1, 2014
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$ 0
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Dividends
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12,500
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Cash balance, May 31, 2014
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20,300
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Retained earnings
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Cash receipts:
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May 1, 2014
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0
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Issuance (sale) of stock to owners
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200,000
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Retained earnings
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May 31, 2014
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?
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Rent expense
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3,700
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Utilities expense
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10,500
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Common stock
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200,000
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Adjustments to reconcile
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Equipment
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402,700
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net income to net cash provided by operations
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29,400
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Office supplies
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4,400
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Accounts payable
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33,800
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Salary expense
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230,000
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Service revenue
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450,300
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