Problem:
1. Financial information related to Joshua Tree Interiors for August and September 2010 is as follows:
a. Prepare balance sheets for Joshua Tree Interiors as of August 31 and as of September 30, 2010.
b. Determine the amount of net income for September, assuming that no additional capital stock was issued and no dividends were paid during the month.
c. Determine the amount of net income for September, assuming that no additional capital stock was issued but dividends of $17,500 were paid during themonth.