Question: The following amounts were taken from the accounting records of Rainbow Consulting Services, Inc., as of July 31, 2007. Rainbow Consulting Services began its operations on August 1, 2006.
Capital stock $ 20,000
Cash 79,000
Dividends 50,000
Fees earned 676,600
Interest expense 9,600
Land 251,000
Miscellaneous expense 15,000
Notes payable 80,000
Rent expense 72,000
Salaries expense 160,000
Taxes expense 60,000
Utilities expense 80,000
Instructions
1. Prepare an income statement for the year ending July 31, 2007.
2. Prepare a retained earnings statement for the year ending July 31, 2007.
3. Prepare a balance sheet as of July 31, 2007.
4. Prepare a statement of cash flows for the year ending July 31, 2007.