Answer to Question 1
A Cut Above, Inc.
Income Statement
For the Month Ended December 31, 2011
Service revenue 1,000
Expenses:
Wages Expense 400
Insurance expense 200
Depreciation expense 100
Supplies expense 100 800
Net income 200
A Cut Above, Inc.
Statement of Changes in Shareholders' Equity
For the Month Ended December 31, 2011
Beginning Common Stock 0
Common Stock Issued 1,000
Ending Common Stock 1,000
Beginning Retained Earnings 0
Net income 200
Dividends 100
Ending retained earnings 100
Total shareholders' equity 1,100
A Cut Above, Inc.
Balance Sheet
At December 31, 2011
Current assets Current liabilities
Cash 400 Wages payable 100
Accounts receivable 300
Total current assets 700 Shareholders' equity
Equipment (net of 100 Common stock 1,000
accumulated depreciation) 500 Retained earnings 100
Total shareholders' equity 1,100
Total liabilities and
Total assets 1,200 shareholders' equity 1,200
Answer to Question 2
report form