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Prepare an Income Statement and a Retained Earnings Statement, for the Month

question 62

Essay

Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below. $\begin{array} { l r } \text { Retained earnings (October 1) } & \$ 15,000 \\\text { Common stock } & 30,000 \\\text { Accounts payable } & 6,000 \\\text { Equipment } & 29,000 \\\text { Service revenue } & 23,000 \\\text { Dividends } & 6,000 \\\text { Insurance expense } & 3,500 \\\text { Cash } & 11,000 \\\text { Utilities expense } & 700 \\\text { Supplies } & 2,800 \\\text { Salaries and wages expense } & 9,000 \\\text { Accounts receivable } & 10,000 \\\text { Rent expense } & 2,000\end{array}$ $Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below. \begin{array} { l r } \text { Retained earnings (October 1) } & \$ 15,000 \\ \text { Common stock } & 30,000 \\ \text { Accounts payable } & 6,000 \\ \text { Equipment } & 29,000 \\ \text { Service revenue } & 23,000 \\ \text { Dividends } & 6,000 \\ \text { Insurance expense } & 3,500 \\ \text { Cash } & 11,000 \\ \text { Utilities expense } & 700 \\ \text { Supplies } & 2,800 \\ \text { Salaries and wages expense } & 9,000 \\ \text { Accounts receivable } & 10,000 \\ \text { Rent expense } & 2,000 \end{array}$ $Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below. \begin{array} { l r } \text { Retained earnings (October 1) } & \$ 15,000 \\ \text { Common stock } & 30,000 \\ \text { Accounts payable } & 6,000 \\ \text { Equipment } & 29,000 \\ \text { Service revenue } & 23,000 \\ \text { Dividends } & 6,000 \\ \text { Insurance expense } & 3,500 \\ \text { Cash } & 11,000 \\ \text { Utilities expense } & 700 \\ \text { Supplies } & 2,800 \\ \text { Salaries and wages expense } & 9,000 \\ \text { Accounts receivable } & 10,000 \\ \text { Rent expense } & 2,000 \end{array}$

Definitions:

Special Order

A special order refers to a one-time order that is outside the scope of regular production or services, often requiring a unique pricing and decision-making process.

Annual Financial Advantage

The financial benefits or savings realized by a company over the course of a year, often resulting from efficiencies, investments, or strategic decisions.

Outside Supplier

A third-party company that provides goods or services to another company, as opposed to the company producing these items in-house.

Purchase Subcomponent

The act of buying parts or elements that will be used to assemble a final product.