On September 1,2011,Fast Track,Inc Prepare an Income Statement for September for the First Month

question 95

Essay

On September 1,2011,Fast Track,Inc.was started with $30,000 invested by the owners as contributed capital.On September 30,2011,the accounting records contained the following amounts:
$\begin{array}{lrlr}\text { Accounts payable } & \$ 2,200 & \text { Dividends declared and } & \$ 2,300 \\ & & \text { paid } & \\\text { Accounts receivable }&2,200 & \text { Office equipment } & 25,000 \\\text { Accumulated depreciation } & 500 & \text { Office supplies inventory } & 1,750 \\\text { Cash } & 10,000 & \text { Office supplies expense } & 600 \\\text { Consulting fees revenue } & 19,200 & \text { Rent expense } & 2,400 \\\text { Contributed capital } & 30,000 & \text { Salary expense } & 6,900 \\\text { Depreciation expense } & 500 & \text { Telephone expense } & 250\end{array}$ Prepare an income statement for September for the first month of Fast Track's operation.Ignore income taxes.

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Definitions:

Manufacturer List Prices

The recommended retail price set by the maker of a product, indicating the price retailers are suggested to sell at to consumers.

Acronym

A word formed from the initial letters of a name or by combining initial letters or parts of a series of words.

FOB

Free On Board; a term in international commercial law specifying at what point the risk of loss shifts from the seller to the buyer.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer gives a previously owned product as part of the payment for a new product.