After its first month of operation, the following amounts weretaken from the acc

Question

After its first month of operation, the following amounts weretaken from the accounting records of Sandcastle Realty Inc. as ofJune 30, 2009.

CapitalStock                         $18,000          NotesPayable            $54,000

Cash                                        38,000          RentExpense              10,800

Dividends                                7,200           Retainedearnings                  0

Interestexpense                       3,600           Salariesexpense          16,200

Land                                        66,600          Sales commission        89,100

Miscellaneousexpense              4,500          Utilitiesexpense          13,500

Prepare an income statement for the month ending June 30,2009.

Explanation / Answer

                             Income Statement of Sandcastle Realty Inc.                                                       June 30,2009 Salescommission                         89,100 -Expenses utilities               13,500 salaries               16,200 rent                    10,800 Misc.exp              4,500 interestexp.          3,600               48,600 NetIncome                                  40,500

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