Chapter 2 Basic Accounting Concepts 73
(2)
(3)
Sumner Insurance, Inc.
Income Statement
For the Month Ending April 30, 2007Revenues:
Fees earned $11,500
Expenses:
Rent expense $3,500
Salaries expense 1,400
Automotive expense 650
Interest expense 60
Miscellaneous expense 300
Total expenses 5,910
Net income $ 5,590Sumner Insurance, Inc.
Retained Earnings Statement
For the Month Ending April 30, 2007Net income $5,590
Less dividends 1,000
Retained earnings, April 30, 2007 $4,590Sumner Insurance, Inc.
Balance Sheet
April 30, 2007Assets
Cash $ 7,590
Land 20,000
Total assets $27,590Liabilities
Note payable $ 8,000Stockholders’ Equity
Capital stock $15,000
Retained earnings 4,590
Total stockholders’ equity 19,590
Total liabilities and stockholders’ equity $27,590