9 zero soda bottling has just completed its end of period analysis and adjustments a 4352190

9.Zero Soda Bottling has just completed its end-of-period analysis and adjustments. Account balances as of December 31, 2007 are as follows:

Cash$280,000Owners' equity$ 920,000

Accounts receivable180,000Sales revenue1,240,000

Merchandise460,000Cost of goods sold620,000

Equipment340,000Wages expense240,000

Accounts payable90,000Utility expense130,000

Required:

Prepare an Income Statement.

10.On March 1, 2007, Alana and Eva started the Decorating Review Company. They offer a complete line of decorative items and decorating services. Following are the transactions occurring during the first month of business:

1.The business was started by each partner contributing $9,000.

2.Each partner also contributed $6,000 worth of antique items from their own collections to the business.

3.The annual business license and permits totaled $1,500 and were paid in cash. (Hint: This will require an adjusting entry.  Use the asset account titled Prepaid Business Fees.)

4.A used delivery van was purchased by paying $3,000 down and signing a three-year note payable for the $15,000 balance. Interest expense on this loan is $1,800 for the first year.  The first payment is due April 15. (Hint: This will require an adjusting entry).

5.An inventory of accessories was purchased on credit for $4,500.

6.A shop was rented for $500 monthly, and the first month's rent was paid.

7.Advertising costing $700 was run in the newspaper. The bill had not yet come by the end of the month and had not been paid.

8.Services totaling $6,000 were performed during the month for cash.

9.Services totaling $10,000 were performed during the month on credit.

10.Accessories costing a total of $5,000 were sold to customers for $8,000 cash.

11.Gas, oil, and maintenance on the delivery van totaling $300 were paid for.

12.At the end of the month, Alana and Eva each withdrew $1,000 from the business for personal expenses.

 

Required

Prepare an income statement for the month of March.

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