From the Information Given Below, Prepare a November Income Statement

question 149

Essay

From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1 of the current year, Victoria Garza began Garza Décor, Inc. with an initial investment of $50,000 cash. On November 30, her records showed the following (alphabetically arranged) items and amounts. $\begin{array}{c}\begin{array}{lll} \text {Accounts payable....................}&\$12,000\\ \text {Accounts receivable.............}&19,000\\ \text {Cash...............................}&21,200\\ \text {Fees earned.................}&34,000\\ \text {Notes pavable..............}&4,250\\ \end{array}\begin{array}{lr}\text { Office furnishings ........ } & \$ 40,000 \\\text { Dividends ..... } & 6,000 \\\text { Rent expense .......... } & 9,600 \\\text { Salaries expense ....... } & 4,200 \\\text { Telephone expense ..... } &250\end{array}\end{array}$

---

Definitions:

Social Security Act

A law enacted to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Family and Medical Leave Act

A U.S. law that provides employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons.

Consolidated Omnibus Budget Reconciliation Act

A federal law in the United States that provides individuals and their families the right to continue health care coverage under the group plan for limited periods under certain conditions.