Use the Following Accounts and Information to Prepare,in Good Form,an

question 138

Essay

Use the following accounts and information to prepare,in good form,an income statement,statement of retained earnings,and balance sheet for Hometown Industries for the month ended July 31,2010.
$\begin{array}{lrlr}\text { Accounts Payable } & \$ 3,100 & \text { Land } & \$ 35,000 \\\text { Accounts Receivable } & 1,400 & \text { Notes Payable } & 3,300 \\\text { Buildings } & 22,000 & \text { Rent Expense } & 2,400 \\\text { Cash } & 15,600 & \text { Retained Earnings, June } & 57,900 \\& & 30,2010 & \\\text { Commissions Earned } & 12,700 & \text { Salaries Expense } & 10,000 \\\text { Common Stock } & 20,000 & \text { Supplies } & 400 \\\text { Dividends } & 8,000 & & \\\text { Insurance Expense } & 2,200 & &\end{array}$

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Definitions:

Shipped Goods

Items or products that have been transported from one location to another, typically through a commercial carrier.

Inspects

The action of examining something or someone closely to ensure compliance with standards.

Obligation

A commitment or duty to do something or to refrain from doing something.

Merchant

A person or company involved in the wholesale or retail trade of goods or services.