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Income statement & Balance sheet

See file attached for tables to be completed.

Mostert Music Company had the following transactions in March:
1. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account.
The cost of the instruments was $7,000
2. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account.
3. Paid $600 in wages for the month.
4. Received a $200 bill for utilities that will be paid in April.
5. Received $1,000 from customers as deposits on orders of new instruments to be sold to the customers in April.
Complete the following statements:

O'Shea Enterprises started the 2002 accounting period with $30,000 of assets (all cash), $18,000 of liabilities, and $4,000 of common stock. During the year, O'Shea earned cash revenues of $48,000, paid cash expenses of $32,000, and paid a cash dividend to stockholders of $2,000. O'Shea also acquired $10,000 of additional cash from the sale of common stock and paid $6,000 cash to reduce the liability owed to a bank.


a. Prepare an income statement, statement of changes in stockholders' equity, period-end balance sheet, and statement of cash flows for the 2002 accounting period.


Solution Summary

The solution contains income statement, statement of changes in shareholders' equity, Balance sheet and statement of cash flow