Lawson Consulting, which began operations on December 1, had the following accounts and amounts on December31. The I. Lawson, Capital account balance at December 1 was $0 and the owner invested $15,050 cash in the company onDecember 2. On December 31, the company's accounts and amounts for the month of December are shown in the tablebelow:CashAccounts receivableEquipmentAccounts payableI. Lawson, Capital$ 7,500 I. Lawson, Withdrawals5,000 Services revenue7,000 Rent expense3,450 Wages expense15,050$ 2,00013,5002,5008,000Use the above information to prepare a December income statement for the business.LAWSON CONSULTINGIncome StatementFor Month Ended December 31Revenues:Services revenue2$Expenses:Rent expenseWages expenseNet income

Here we will make the income statement on the basis of the accounting information that has been…

Answered: Use the above information to prepare a…

Business

Accounting

Use the above information to prepare a December income statement for the business.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1PA: Provide journal entries to record each of the following transactions. For each, also identify *the...

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Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
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The following balance sheets and income statement were taken from the records of Rosie-Lee Company: Additional transactions were as follows: a. Sold equipment costing 21,600, with accumulated depreciation of 16,200, for 3,600. b. Issued bonds for 90,000 on December 31. c. Paid cash dividends of 36,000. d. Retired mortgage of 108,000 on December 31. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method.
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